State Equity Participation In Red Plate Companies Escorted By BPK, Minister Of SOEs: To Be More Transparent

Photo: VOI/Mary Handayani

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir responded positively to the involvement of the Supreme Audit Agency (BPK) to oversee the State Equity Participation (PMN) given to companies in corporate restructuring.

Erick believes that BPK's participation will help the transformation process and change the business model of SOEs that receive PMNs so that they are transparent, accountable, and effective.

This was conveyed by Erick Thohir in the context of receiving a letter of assignment for BPK's examination of PMN against several state-owned companies in the 2020-2022 period.

"In principle, we want to ensure that the transformation of SOEs in an uncertain world is more efficient, open, based on good corporate governance, and innovates according to the overall business model according to each SOE. The role of BPK is very important and strategic to encourage this," said BPK Erick Thohir at the BPK Building, Jakarta, Friday, August 19.

Moreover, said Erick, the capacity of BUMN, which is responsible for a third of the national economy, is required to maintain the mandate in managing state money in order to provide real benefits for the entire nation.

In this era of openness, continued Erick, sometimes public perceptions stand out more than facts. Often PMN has a negative connotation. Likewise, SOE debt is often perceived as bad.

"In fact, from 2012 to 2022, the total contribution made by SOEs, whether from taxes, non-tax revenues, and dividends to the state is three times larger than debt. This indicates that SOEs are currently healthy," said Erick.

Therefore, Erick appreciates BPK's involvement from an early age. According to him, BPK will help a lot in the process of transformation and restructuring of SOEs running as expected. Moreover, after discussing with other ministries, they agreed that collaboration with BPK would be very strategic in order to equalize perceptions.

One of the perceptions that must be equated, for example, is about the assignment of public services or Public Service Obligations (PSO) which are often carried out by SOEs. Erick stated that so far assignments are often given not based on corporate processes, so that SOEs have difficulty in dealing with the shackles of total debt and cash flow due to carrying out these assignments.

"Therefore, I want BPK to support and encourage the policy plan that is being agreed upon, namely that the assignment to SOEs must be agreed upon by at least three ministries. The Ministry of SOEs is the management of SOEs, then the Ministry of Finance as the shareholders of SOEs, and the relevant Ministries which have the main task and function of encouraging assignment to SOEs," he explained.

"Essentially, we want the transformation of SOEs to run in a healthy manner and the contribution to the state will not be misdirected," he continued.

On this occasion, Erick also asked BPK to support quick decisions regarding the future of state-owned companies that are no longer profitable. Moreover, changes in the world are happening fast, whether due to digitalization, environmental factors, health, and geopolitics, requiring quick decisions.

"If you have to close, merge, and change the business model of BUMN, which is no longer productive in business, it must be fast," he said.