Erick Thohir Disbands 7 SOEs, Including Merpati Because The Workers Are Adrift: We Are Wrong If The Employees Are Not Given Certainty

Pigeon Plane. (Photo: Wikimedia Commons)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed that he will dissolve seven state-owned companies because they are no longer operating.

However, the seven disbanded companies are still listed as having workers. According to Erick, the workers never got a clear policy.

"Right now, there are seven that need to be closed, which have not operated for a long time and it's a pity that the fate of the employees is hanging. We are wrong if the employees are not given certainty," he said during the 'One Hour with the Special Staff of the Minister of SOEs Arya Sinulingga,'" quoted Friday, September 24.

Furthermore, Erick said that if you don't make a quick decision, it will make the company more and more unhealthy. Therefore, according to him, the acceleration of the decision is very important.

"When we see that there is a company that is not healthy and is now open to digitalization and its market, if a quick decision is not taken, it will make it more and more unhealthy. Even though in a short time we can fix it. Only because the process is not healthy, in the end, It's not just unhealthy, it's bankrupt and closed," he said.

But unfortunately, Erick has not provided a more detailed explanation regarding when the closing of the seven SOEs will be and what the settlement of the rights of the workers will look like in the future.

Here are seven state-owned companies that will be closed:

1. PT Merpati Nusantara Airlines (Persero)

Merpati records losses. In fact, it was also mentioned that Merpati had not been in the air since February 2014. Then, all aircraft production facilities were over 30 years old and in damaged condition.

The company's financial condition is problematic. Therefore, the government assigned PT Perusahaan Pengelola Aset (PPA) to solve Merpati's problems by providing a restructuring loan of IDR 663.99 billion.

Lately, there was news that Merpati wanted to fly again, but so far this has not been realized.

Problems are still afflicting the company. A number of former Merpati Airlines pilots sent an open letter to President Jokowi. They demand severance rights that have not been completed by the state-owned company. The letter was sent since June 17, 2021, and has received a receipt.

2. PT Kertas Leces (Persero)

Kertas Leces is said to have stopped operating since 2015. The reason is that the supply of raw materials is not available, and does not have an integrated business. In fact, the production equipment for pulp and paper machines is old, resulting in inefficient operations.

This state-owned company also received funding assistance from PPA worth IDR 38.5 billion. But until now there has been no continuation of the restructuring of the BUMN.

3. PT Industri Glass (Persero) or Iglas

This company is one of the SOEs that Erick is eyeing to close. The consideration is because the company's condition is already dying, it has even become a PPA 'patient'. The company had received a bailout of IDR 49.96 billion and a restructuring loan of IDR 89.08 billion for this company. But so far there has been no continuation.

4. PT Kertas Kraft Aceh (Persero)

Citing Bisnis.com in November 2018, the company has stopped operations due to several operational constraints that have an impact on financial conditions. kertas Kraft Aceh also filed an application for a declaration of bankruptcy at the Medan Commercial Court in the same year.

In 2019, there is a plan to merge Aceh Kraft Paper with Leces Paper. However, this company could not survive.

Erick has also handed over this company to PPA. The company provided a bailout of IDR  51.34 billion and a restructuring loan of IDR 141.61 billion for this SOE. However, so far there has been no further improvement.

5. PT Industri Sandang Nusantara (Persero)

This company is engaged in the textile sector. This company is known to still produce masks in the midst of the current COVID-19 pandemic. Quoted from the official website, PT ISN, this company produces a market with the Insan Mask brand. This production can be seen from the distribution permit they received from the Ministry of Health on November 20, 2020.

This SOE also received an injection of funds from the PPA amounting to IDR 26 billion. This is given as an aid for the continuity of the company.

6. PT Pembiayaan Armada Niaga Nasional (Persero)

This state-owned company is engaged in ship financing. However, Erick said that this SOE was not focused on running its business, which was instead targeting other business lines. PANN operates outside the main business or core business of the company.

Erick also once gave a surprising fact to the public because he said that PANN only had seven employees, from directors to commissioners.

7. PT Istaka Karya (Persero)

The last is an SOE which is engaged in the construction sector. The company has reportedly been out of business for a long time. In fact, employee salaries have not been paid.

Reporting from CNBC Indonesia, PT Istaka Karya (Persero) Corporate Secretary Yudi Kristianto spread the news that Istaka Karya employees had not received wages.

"It's true that until January this year, we have not received our salaries for 8 months," said Yudi, Tuesday, January 5.

PPA is currently restructuring Istaka Karya due to the myriad problems the company is facing. In 2020, Istaka had received a bailout from PPA worth IDR 62.44 billion, but it is not yet clear how it will be used.

Still citing the same source, Istaka Karya President Director Sigit Winarto said the pandemic had a huge impact on the allocation of Istaka Karya's infrastructure development.

"It is like the construction cake is getting smaller, the level of competition is getting higher and tighter. Apart from the main issues related to health, it also ensures the safety of all employees, while ongoing projects must continue," he said, Wednesday, August 11.

Sigit said that in the midst of such intense competition, the company had to do a thorough reorganization. Starting from the implementation strategy, new procedures for working, as well as adjusting the company's financial capacity. This is to ensure the company's ability to provide full support for the project.