SOE Minister: A Healthy Red Plate Company Can Be A Market Balancer

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir emphasized that the health condition of state-owned companies is crucial.

According to Erick, a healthy state-owned enterprise will certainly have a major impact on the state and society.

In addition, it can also balance the market through a number of interventions such as market operations.

"These things, balancing the market can only be done if the SOEs are healthy. If the SOEs are sick, they want to intervene in the market, making it difficult for themselves," he said, in Jakarta, Friday, August 19.

Therefore, Erick said from the start, his party was committed to cleaning up SOEs through a comprehensive transformation by improving business processes and focus to implementing a work culture with core values of morality.

Erick believes that the clean-up of business and human resources (HR) will bring big changes for SOEs.

Not only able to boost performance, Erick said that the transformation program is also a big foundation for SOEs to minimize corrupt practices within the company.

"Corruption is a part that must be eradicated, although we are aware of corruption from ancient times until now, but we must minimize corruption, especially corruption of people's money, government money, this is very painful," said Erick.

Erick said that a number of transformations carried out by SOEs, ranging from downsizing the number of SOEs and their clusters, forming holdings to strengthen the ecosystem, to closing SOEs that were 'suspended in death', not only encouraged the improvement of SOEs, but also increased their contribution to the state and society.

"This means, if SOEs are corrupt and unhealthy, how can they become a good corporation and can be a part of when the government intervenes with policies when there is an imbalance," he said.