Dividend Donations Soar 150 Percent From Target, BUMN Cutting Ala Erick Thohir Is Assessed As Successful

JAKARTA - SOE Minister Erick Thohir has a focus on cutting the number of state-owned companies, the goal is to improve the company's performance. This decision is considered to be a supporting factor in increasing BUMN dividend donations of up to IDR 74.1 trillion or 150 percent of the target in October 2023.

BUMN observer Toto Pranoto assesses that the downsizing of the number of state-owned companies through the establishment of holdings and mergers or mergers of companies has proven to make SOEs' performance much better.

Therefore, Toto admitted that he agreed with Erick Thohir's decision to reduce the number of SOEs to 30 companies in the future.

"Almost half of the BUMN profits in 2022, for example, are donated by the banking sector (Himbara). This means that the state-owned pareto condition has not changed," Toto said in an official statement received by VOI, Monday, November 27.

Furthermore, the BUMN Research Group Associate Director of the Faculty of Business Economy (FEB) of the University of Indonesia (UI) also said that the efficiency and strengthening of SOEs through holding will create a more qualified state of BUMN.

"With restructuring programs such as holding or merger formation, SOE performance should be further improved. In the future, Indonesia may have fewer SOEs but have stronger competitiveness," he said.

According to Toto, the focus that is oriented towards improving performance is the determinant of the increasing number of contributions from SOEs to the state.

"This is positive news that the contribution of SOEs in the form of dividends to the state is getting bigger," concluded Toto.

Previously, SOE Minister Erick Thohir said the transformation of state-owned companies had had a major impact on the state and society. Through a thorough transformation, Erick succeeded in increasing the contribution of SOEs to the state.

"Alhamdulillah, the Minister of Finance Sri Mulyani Indrawati was also happy because the dividend of SOEs until October 2023 had reached Rp74.1 trillion," said Erick.

Erick conveyed that the realization of dividends or non-tax state revenues (PNBP) from separated state assets (KND) was 150 percent higher than the initial target. According to Erick, this achievement is concrete evidence of changes in SOEs that have a positive impact on the company's performance.

Erick conveyed that the largest contribution came from SOEs engaged in the banking and energy sectors. Therefore, Erick continues to encourage increased contribution from SOEs in other sectors to further increase the contribution of SOEs to the state and society.

"From the start, I have always emphasized that SOEs must be the bulwark of Indonesia's economy. The increase in contribution also illustrates the condition of SOEs which continues to improve," he said.