JAKARTA - Danantara Indonesia emphasized the new direction of restructuring for state-owned companies, especially state-owned enterprises. This step is taken by restoring the company's business focus to its competency core, not in sectors outside the main sector such as hotels, drinking water, or property.
Danantara Indonesia Chief Operating Officer (COO) Dony Oskaria said the ongoing restructuring would cut non-core businesses so that BUMN works again act as professional contractors with clear specializations.
"We have a work company that certainly knows the condition, we will merge this. And we will return the business model to become a contractor with each specialization," he said at an event in Jakarta, written Friday, October 10.
According to Dony, so far many SOEs have lost focus because they run businesses outside of main expertise, ranging from drinking water management, fiber optics, toll roads, to hotels.
"In the past, Karya owned a drinking water company, had fiber optics, had toll roads, had housing, had hotels. But the core business itself doesn't have one," he said.
Dony said the Danantara-driven restructuring was carried out through consolidation and business model redesign, including the merger of several work entities to make them more efficient and have a strong economic scale.
According to Dony, this step will also reorganize the organizational structure and income flow so that state companies no longer overlap projects or compete with each other in the same sector.
"So, please support this restructuring from the Indonesian people, this will consume a lot of energy for us to carry out this process so that these companies will become companies that run according to their corridors. This is what we will do in the future and we are doing today," he said.
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In addition, Dony revealed how Danantara consolidated 1,000 SOEs. He said, the steps taken were to transform the business model, determine the flow of income or source, create a more efficient system for business to human resource transformation.
"We do all the goals for only one, that we want, then these state-owned companies to become competitive companies in the future," he said.
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