Erick Thohir: Synergy Between BUMN And BUMD Needs To Be Carried Out To Support Economic Growth

SOE Minister Erick Thohir (Photo: Ministry of SOEs)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir said the synergy of SOEs and Regional Owned Enterprises (BUMD) is very important. Because, with this synergy, it will encourage economic growth both at the regional and national levels.

"Synergy between BUMN and BUMD that have the same vision is necessary. Synergy and transformation are good for the interests of the people," Erick said in a written statement, quoted on Sunday, September 12.

Currently, said Erick Thohir, several collaborations between BUMN and BUMD have been running. For example, PT Tjipinang Food Station, which is a BUMD owned by the DKI Jakarta Government, and PT Sang Hyang Sri (Persero), a BUMN engaged in agriculture.

In the transportation sector, continued Erick, cooperation between BUMN and BUMD in DKI Jakarta is also carried out, namely building joint ventures and an integrated transportation system in Jabodetabek. Synergy is also carried out in the management of the Sunda Kelapa Old Town area, Jakarta.

"We are very open to open other collaborations with BUMD and local governments who are present today," he said.

Erick said that after being affected by COVID-19, the Indonesian economy is now in the recovery stage. Based on the data, said Erick, there are 10 provinces that have recorded positive growth. Therefore, Erick said, efforts and initiatives from the center were not enough, regional support was needed to encourage positive economic growth.

"Businesses and initiatives from the center are not enough. It needs the involvement of the local government which certainly understands the characteristics of the region better. And in that case, the role of BUMD is important to become partners and increase business activities in the region," he explained.

Head of Balitbang Ministry of Home Affairs Agus Fathoni, representing the Minister of Home Affairs, Tito Karnavian, said that if great BUMDs continued to develop in the regions, it would be easier to achieve equitable distribution and acceleration of national development.

Tito emphasized that the synergy of BUMD needs to be developed optimally. The mutually beneficial synergy between BPD and BPR can be utilized to increase MSME financing in the regions.

"They do not need to compete among BUMDs, but instead synergize to strengthen each other. In addition, BPD must also support the business development of other BUMD-BUMD sectors," he said.

Furthermore, Tito emphasized the importance of the role of regional heads to continue to foster and direct BUMD. The goal is that BUMDs continue to improve their performance and services to develop the region while accelerating the recovery of the national economy in the new normal.

Tito said, if BUMDs intervened disproportionately, it would hamper the growth of BUMD's performance and services. Interventions, must be carried out positively, to support BUMD. The Ministry of Home Affairs also appreciates the efforts of local governments and BUMDs who have tried to quickly take steps to overcome COVID-19. Such efforts have been underway in terms of economic and health protection.

"One of the consequences of regional autonomy is the growth of the regional economy to serve the public. And in this case BUMD must be able to serve the community," he said.