Erick Thohir Says 90 Percent Of SOEs Are Still Affected By The COVID-19 Pandemic, But Still Must Incentivize Advertising

Minister of SOEs, Erick Thohir. (Photo: Doc. Antara)

JAKARTA - SOE Minister Erick Thohir said that not only private companies were affected by the COVID-19 pandemic. According to Erick, the majority of state-owned companies have experienced the same thing and only a few have survived the onslaught of the pandemic.

Erick also appreciated the toughness of the media and advertising industry which was very challenging in the midst of a pandemic. According to Erick, despite the weakening consumption, economic challenges, the need for advertising will not disappear.

Furthermore, Erick said that currently there is a shift in needs on a platform basis, where the way to advertise is by digitizing. The reason, advertising is part of the promotion that must be run. According to him, this is an effort for business continuity and growth, namely brand or product awareness that must be maintained for consumers.

"When times are good you should advertise, when times are bad you must advertise. Even though in BUMN, as well as in the private sector, 90 percent are affected by the pandemic, 10 percent of which can survive growth, we are still committed to promoting other activity products by advertising," he said in a webinar. , Tuesday, June 29.

According to Erick, this step is in accordance with the direction of President Joko Widodo (Jokowi). According to him, all parties must have a commitment and prioritize local media and local agencies.

"Of course the pandemic is a momentum for all industries to improve themselves, including media and advertising. The key is adapting, innovating, and collaborating. We must build an ecosystem together," he explained.

Therefore, said Erick, the Ministry of SOEs and all state-owned companies emphasize that they must be a balancer in the national economy. According to him, BUMN must be the locomotive of development, and must ensure the company runs healthy.

"So that we can continue to activate programs that are close to the people. Even the government's contribution, where the government also needs dividends from us, includes a balance with the current open market era," he said.

One example, continued Erick, is the Himbara industry, where Himbara banks are encouraged to sustain in the open market with foreign private companies. According to him, SOEs do not carry out a monopoly.

"Competing in a healthy manner without leaving assignments, for example how to continue to help MSMEs. We also emphasize the directors who are present, commissioners are present, just like Himbara, I hope we must be a balancer," he said.