Deputy Minister Of BUMN Calls Krakatau Steel And PTPN III Almost Bankrupt, Two Examples Of Cases That Can Be Saved With This

Deputy Minister (Wamen) of BUMN Kartika Wirjoatmodjo. (Photo: Doc. Antara)

JAKARTA - Deputy Minister of SOEs Kartika Wirjoatmodjo told about the restructuring process carried out by PT Kratakau Steel and PT Perkebunan Nusantara III which prevented the collapse of the two companies.

"I happened to have a discussion with the Minister of SOEs (Erick Thohir) and we have a report on the progress of the transformation in Krakatau Steel and PTPN," he said in Jakarta, quoted from Antara, Thursday, July 29.

Tiko, Kartika Wirjoatmodjo's nickname, explained that Krakatau Steel as a steel company that almost went bankrupt, was successfully restructured two years ago in a significant way from a financial and business perspective.

The various improvements made have made the company book a profit and have several corporate actions to change the vision and business model, so that it becomes healthy and sustainable.

Meanwhile, he added, a similar case was also experienced by PTPN which had just been reorganized in the last 1.5 years because it was in debt until it almost went bankrupt.

"In Indonesia, there are plantation companies that want to go bankrupt, it's strange, because this country is an agricultural country. How could it almost go bankrupt," said Tiko.

Therefore, the Ministry of SOEs carries out business transformation, including operational efficiency, business refocusing, boosting crop productivity, improving management competence, improving garden management, and so on.

These improvements have made PTPN start to record profits in line with rising commodity prices, have a corporate plan to unite the sugar and CPO businesses, and pay obligations in subsidiaries that are experiencing problems.

"These are two examples of interesting cases that can be used as case studies by DLI (Danareksa Learning Institute) where SOEs, which so far seem to have no turn-around ability, have proven to have carried out turn-arounds more effectively," said Tiko.

As is known, the state-owned company PT Danareksa has just launched the Danareksa Learning Institute (DLI) which is designed to strengthen human resources so that they have skills and global competitiveness.

During the launch, Tiko explained that the Danareksa and Asset Management Company (PPA) cluster was formed for a special task which is expected to be able to carry out the skill-up process of SOE companies that are still sub-scale.

The establishment of DLI is also expected to be able to increase the capacity as an asset management company which will be able to serve not only internal, but also national needs.

In addition, this synergy can produce talents who are reliable in practical management, and also have business innovations, operations innovations, and digital innovations.