Minister Erick Thohir Supports SOE Synergy With Global Players

Photo: BPMI Setpres/Muchlis Jr

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir ensured support to realize the national investment target of IDR 1,400 trillion in 2023.

Not only playing a role in maintaining economic growth in the country, SOEs have the opportunity to increase their business scale to become global players.

Of Indonesia's total investment targets, the government encourages the Ministry of SOEs to invest outside the capital market of IDR 127 trillion by utilizing assets owned by SOEs.

Please note, Indonesia is targeting investment this year to increase by IDR 200 trillion compared to 2023 which reached IDR 1,207 trillion. The government said that last year's investment realization consisted of 53 percent in Java and 47 percent in Java.

"With the target of Pak (President) of IDR 1,400 trillion, we are trying to encourage the Ministry of SOEs to get investment outside the capital market worth IDR 127 trillion in all BUMN assets that cooperate with the private sector or encourage MSMEs," said Erick while attending the Mandiri Investment Forum (MIF) 2023 some time ago.

The investment target of IDR 127 trillion is divided into seven sectors. Starting from energy and oil and gas (IDR 33.8 trillion), tourism and its supporters (IDR 21.5 trillion), logistics services (IDR 20.1 trillion), infrastructure (IDR 20 trillion), coal minerals (IDR 14.4 trillion), financial services (IDR 9 trillion), and health and others (IDR 8.5 trillion).

On another occasion, Erick Thohir assessed the need for collaboration between SOEs and partners abroad in order to encourage more state-owned companies to become global players.

Several strategic partnership opportunities that have been explored are PT Angkasa Pura (AP) II together with GMR Group from India for possible airport development. Then, PT Pelabuhan Indonesia (Pelindo) and the Indonesia Investment Authority (INA) explored strategic cooperation with Dubai Port (DP) United Arab Emirates (UAE).

"BUMN helps the Ministry of Investment and Pak Luhut to invest so that SOEs are more transparent and willing to become global players," he added.

Previously, President Joko Widodo said that investors in various countries were interested in investing, especially in equal distribution of infrastructure, such as toll roads, ports, airports, both in Java and outside Java.

BUMN seeks to play a role to maintain economic growth amid global uncertainty. Although it is predicted that it will not be hit by a recession, the World Economic Outlook (WE) edition January 2023 report states that the IMF revised the projected economic growth in the country to 4.8 percent from the previous 5 percent.