DPR Supports BUMN Transformation To Minimize The Impact Of COVID-19

Parliament building. (Irfan Meidianto / VOI)

JAKARTA - The spread of the corona virus or COVID-19 in Indonesia is increasingly widespread. As a result, State Owned Enterprises (BUMN) cannot pay dividends according to the target this year. However, the Ministry of BUMN has prepared a big agenda for transformation in order to stabilize this impact.

Deputy Chairperson of the House of Representatives Commission VI Aria Bima said that his party understands the negative impact of COVID-19 on SOEs, causing the 2020 dividend to potentially not be achieved. In fact, the 2021 dividend is projected to reach only 50 percent. Therefore, the DPR will support the Ministry of BUMN's program to overcome this.

"Commission VI supports the running of the BUMN Ministry's seven transformation programs so that the effectiveness of BUMN companies in carrying out their business operations in order to generate greater profits, increase dividends, and provide added value to the country can be achieved," said Aria, reading the results of the Commission VI work meeting with Ministry of BUMN, Friday, April 3.

Aria reminded that the achievement of the program must be in accordance with Law Number 19/2003 on BUMN. Article 65 paragraph (2) which reads:

"In carrying out the actions referred to in paragraph (1) the interests of BUMN, shareholders / owners of capital, third parties, and employees of BUMN must still receive attention."

On the same occasion, BUMN Minister Erick Thohir said that state-owned companies' dividends this year would miss previous predictions. Whereas initially it was expected to increase even up to two times. Therefore, his party will continue the big agenda that has been prepared.

"We hope that in 2022 BUMN can return to stability. Because there are seven big agendas for BUMN transformation," said Erick.

First, focus on BUMN. The plan for the transformation is to classify BUMN based on economic value, public services, or both. In the current status update, the Ministry of BUMN is in the stage of finalizing the portfolio management mapping.

Then, second, portfolio dynamics. The transformation plan is for the Ministry of BUMN to close, merge, and / or form strategic partnerships. As for the current status update, the Ministry of BUMN will immediately rationalize BUMN subsidiaries.

"At this time we have taken steps. Garuda Indonesia closed its 6 subsidiaries. Pertamina rationed 25 subsidiaries in two years. This year is eight, next year 17. Telkom, this year 20 companies. But this is only three companies," he explained.

Erick ensured that these closings gave priority to workers not being expelled, or in other words, being transferred to other businesses. According to him, efficiency is prioritized for finance and strengthening cash flow.

Third, handling strategic projects. The transformation plan is for BUMN to remain responsible for financing the Public Service Obligation (PSO) through the formalization of government funding.

"We have met two, three times with the Ministry of Energy and Mineral Resources and the Ministry of Finance. It is not impossible that in the future all subsidies that go to BUMN will be eliminated but directly to the people. Such as fertilizer, electricity, and others," he said.

However, Erick was reluctant to reveal the details of the formula. Because, this is the domain of the Ministry of Finance which will be tasked with explaining in more detail.

Fourth, build a healthy ecosystem with collaboration between BUMN, BUMD, BUMDes, private sector and strategic partners. One of them is also for COVID-19, because as it is known that BUMN has limited utilization of hospitals (RS).

BUMN owns 65 BUMN hospitals. However, Erick revealed, of the total there are only 35 hospitals that are ready to handle COVID-19.

"That yesterday we had a meeting with private hospitals, private labs, how do we synergize, especially in the epicenter places. Then I also reported, what at that time we signed with the DKI Government regarding the mode of transportation integration. Thank God, with this condition we continue to run, "he said.

Erick also confirmed that several renovations that are currently underway in Tanah Abang, Juanda, and Sudirman will continue. Because, this is indeed according to the target to be completed in January 2021.

"Then also Semen Indonesia with Rembang, we will probably finalize with the governor of Central Java in the next week. Even though the signature is virtual, this is how we build an ecosystem between BUMN and villages, namely the results of the cooperation itself will help absorb a workforce of 1000 people," he said.

President Commissioner of SIG, Soekarwo (center), President Director of SIG, Hendi Prio Santoso (white shirt) and Expert Staff of the Ministry of PUPR, A.Gani Ghazaly Akman while introducing the new SIG logo, Tuesday 11 February in Jakarta.

According to Erick, 80 percent of the workforce comes from Rembang for factories and 245 workers for BUMDes. Then, BUMN is also committed to continuing to reduce the poverty rate, from 19 percent in 2015 to 15 percent.

Fifth, governance. The Ministry of BUMN determines the leadership and business model of each BUMN cluster. Currently, the Ministry of BUMN is in the process of finalizing pressing BUMN clusters from 27 clusters to 14 to 16 clusters.

"This has nothing to do with the subholding that we have previously conveyed. But this cluster is certainly smaller than the number of subholdings that we will carry out in the future," he said.

Erick explained that the cluster is in accordance with the direction of Commission VI, that this cluster is seen from the value chain or supply chain. Because of that, his party reduced the cluster back like this. Thus, the two deputy ministers (Wamen) will only hold seven to eight clusters.

Sixth, innovation and technology leadership. The Ministry of BUMN has established a technology center and innovation center. His party is currently mapping the innovation centers that are owned by each BUMN.