Erick Thohir Efficient Pertamina And Telkom's Business Through The Rationalization Of Business Children And Grandchildren

Pertamina Building. (Angga Nugraha / VOI)

JAKARTA - Two state-owned enterprises (BUMN), namely PT Pertamina (Persero) and PT Telekomunikasi Indonesia (Persero) Tbk (Telkom) will carry out the rationalization of the subsidiary. This was done so that the company was more efficient and focused on running its business.

Pertamina will rationalize 25 subsidiaries in 2020 and 2021. Meanwhile, Telkom this year and next year will rationalize 20 subsidiaries.

Pertamina President Director Nicke Widyawati said that this year Pertamina will rationalize eight businesses, with details of seven being liquidated and one business being divested.

"The rest of our 17 companies will do next year. The next stage will be the third stage after the 17, parallel we are also now reviewing the principles that the Minister conveyed, namely efficiency and focus on core business," he said, in a joint video conference journalists, in Jakarta, Friday, April 3.

Nicke said that in the future, his party will conduct monitoring to see which businesses can then be merged. But it does not rule out, there will be plans to make acquisitions, which are strategically necessary for Pertamina to strengthen its main business.

According to Nicke, this rationalization step is expected to make the company in the future more efficient and focus on companies that are still active.

"So this will create added value for the company. Pertamina does not rule out acquisitions," he explained.

Meanwhile, President Director of Telkom, Ririek Adriansyah, said that currently Telkom has 49 subsidiaries. Of these, some are duplicating business and some are inefficient.

"Therefore, we will rationalize 20 subsidiaries this year and 2021, so that we can focus more on our portfolio and core business," said Ririek.

The rationalization mechanism for the 20 subsidiaries, said Ririek, some will be carried out through a liquidation process, but some will go through a merger process. However, Ririek did not disclose the names of the companies that would be rationalized.

Minister of BUMN, Erick Thohir explained that neither Pertamina nor Telkom would terminate employment (PHK). According to Erick, his party avoids laying off employees who work for the children and grandchildren of state-owned enterprises who are affected by efficiency.

"We still make sure that efficiency runs. Of course there is a question about the fate of employees? At least there is no lay off (layoffs), because there are so many companies that we have streamlined, rationalized, many of which are actually shell companies. So that they can be combined," he said.