Prabowo Will Change The Ministry Of SOEs To Super Holding, Economist: Good But Must Be Consistent

Ministry of SOEs (Photo: Antara)

JAKARTA - The government of the elected president Prabowo Subianto is rumored to be carrying out massive reforms against the Ministry of SOEs. One of the plans circulating is to change the ministry's structure to a body or super holding.

Senior Economist Piter Abdullah admitted that he agreed with the plan. According to him, in several developed countries, the state-owned company is in the form of a super holdinh.

"That's really good. It's actually very good. The practice of SOEs in many developed countries is super holding. With super holding, it means that we place the SOEs for pure corporations," he told VOI, Thursday, October 3.

Pieter said the reform was a solution to a number of the first problems that had been around SOEs. Such as politicization to excessive bureaucratization.

"(With a super holding) he is required to be more professional. There is no political deposit there and what is clear is that it actually functions as a corporation that does not have an assignment from the government. He is no longer an extension of government programs," he explained.

Pieter said this reform has the potential to change the governance of SOEs from conducting bureaucratic to being more corporate-oriented by focusing on pure business considerations.

"We will no longer hear SOEs, we will no longer listen to how SOEs bear subsidies, no. SOEs really focus on how they carry out their functions as corporations," he said.

"What is the benefits for us? The benefits for us with that, SOEs will be the driving force for the economy. Because they will move really efficiently. Yes, the characteristics of the private corporation are efficient. SOEs will be more efficient," he continued.

However, Pieter said this reform was not without challenges. He said that this reform must be carried out consistently if it is to be successful.

"It must be understood, but superholding must be consistent. The problem is, we are ready or not. Super holding is easy to mention, but can we do the consequences?," he said.