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JAKARTA - Minister of State-Owned Enterprises (BUMN), Erick Thohir, said the people's economy is the foundation of choice in Indonesia's economic recovery. However, Erick emphasized that this does not mean that the government does not encourage big private entrepreneurs.

Furthermore, Erick said, this is proven when the synergy of state-owned companies is considered an ivory tower and kills other entrepreneurs, he also does introspection and dismantles it.

“The foundation of Indonesia's economy, which is based on a people's economy, must be the foundation of choice. We are not against the big one, the same when I introspect about BUMN, which is considered an ivory tower, it's true, that the synergy of SOEs is actually a sharp nail that kills entrepreneurs. That's where I unload it", he said at the 2022 Indonesia Retail Summit in Sarinah, Jakarta, Monday, August 15.

Erick said he wanted SOEs to build a win-win ecosystem with private entrepreneurs, especially small, and medium-sized enterprises and also friendly countries. Like, Japan, Korea, or China.

“Because our founding father and our economic policy are indeed an open economy. But an open economy which of course must be by the ecosystem that has been agreed upon by our founding fathers, where the people's economy is the basis", he said.

Because of that, Erick said from the start he had knocked the hearts of SOE leaders, as well as entrepreneurs to help micro, small and medium enterprises (MSMEs) together.

"We are also state-owned enterprises (BUMN) giving the pilot first, where SOEs continue to support MSMEs not only in funding but also in assistance, of course the need for market access, market access, of course, more important business friends both in retail and at Kadin, we try to collaborate", explained Eric.

Erick said the collaboration proved successful. Erick explained that when the COVID-19 pandemic hit Indonesia, there were massive layoffs in urban areas. However, things are different in the countryside.

"The evidence is already there, when we both want to push during the time of COVID, when in urban areas we release workers but women in villages open up 7.1 job opportunities, can you imagine if in the city that gave up work in the village, there is no job. Where is the Indonesian economy going?” he said.


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