Erick Thohir Says SOEs Are No Longer Intensive In Hotel Business

SOE Minister Erick Thohir. (Photo: Theresia Agatha/VOI)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir said state-owned companies would no longer be aggressive in the hotel business sector.

Currently, hotels belonging to state-owned companies have been consolidated.

For your information, the BUMN hotel business is currently in the spotlight after Presidential Candidate (Capres) number 02 Prabowo Subianto said that SOEs do not need to enter the hotel sector.

Erick said, previously almost every state-owned company had a hotel business.

However, after Erick took office, he had revoked the management of the hotel from BUMN, then consolidated it.

"In our blueprint, it's really like this, if we look at the history of state-owned hotels, every SOE has a hotel. That's why when we turn it into one, it becomes 128 hotels that we now consolidate 23 and divide into several categories of 5, 4, and 3," he said when met at Tennis Indoor Senayan, Jakarta, written Friday, March 8.

The hotels belonging to SOEs have been integrated into hotel holdings, under the auspices of PT Wijaya Karya Realty (WIKA Realty). This holding oversees 23 hotels that are consolidated, and managed by Pesona Indonesia Jaya and Hotel Indonesia Group (HIG).

Furthermore, Erick admitted that he would look for partners in the BUMN hotel business. The goal is that SOEs no longer need to focus on all business lines, including hotels.

"Well, this is what we will look for a partner in the future, because there is no need for all SOE lines," said Erick.

According to Erick, the role of SOEs is still needed, especially in important sectors such as health, energy, and food. Including in the transportation sector.

"For important lines such as vaccines, energy, plantations whose context is also towards how to provide food, energy balance, airports, ports, trains, I think it is still needed," said Erick.

Previously, Defense Minister Prabowo Subianto suggested that there should be no need for SOEs to move in the hotel sector.

Prabowo also asked for an assessment from Erick Thohir as Minister of SOEs regarding the idea.

"I think we don't need hotel SOEs. What do you think, Mr. Erick? I ask for Mr. Erick's advice," he said in front of Erick at the Mandiri Investment Forum 2024 event, in Jakarta, Tuesday, March 5.

Prabowo said the proposal came along with keingin to rationalize or reduce SOEs that do not have a clearer business strategy.

Furthermore, Prabowo said that the rationalization of SOEs could be one way to provide space to the private sector. That way the private sector can grow.

"BUMN, Mr. Erick, we have to rationalize, if there is no very strategic reason, maybe we should have a privatization rationalization program from SOEs," he said.