Only Reached 80 Percent, Erick Thohir: Transformation Will Continue So That SOEs Can Become Global Players

SOE Minister Erick Thohir (Photo: Doc. Antara)

JAKARTA - Minister of State-Owned Enterprises (BUMN), Erick Thohir, revealed that the transformation carried out by the Ministry of SOEs has only reached 80 percent.

Erick is optimistic that the remaining 1.5 years can be used to achieve the target of 100 percent.

"Since 2019, the Ministry of SOEs has continued to carry out a comprehensive SOE transformation. Today's SOE transformation has only reached 80 percent and is targeted to be completed in the next year and a half", he said on Monday, October 17.

Erick said that the performance of SOEs since last year has continued to show good improvement.

He explained that the increase in SOE revenue grew by 18.8 percent in 2020-2021, to IDR 2,295 trillion. Even with an increase in consolidated profit which rose 838.2 percent from IDR 13 trillion in 2020 to IDR 124.7 trillion in 2021.

"I am very grateful, our hard work for the past 3 years has sweet fruit, in which the performance of SOEs in 2021 shows a significant increase", he said.

The former Inter Milan boss said that the total assets of SOEs on a consolidated basis at the end of 2021 were recorded at 630 billion US dollars or around IDR 8,978 trillion.

This figure is equivalent to 53 percent of Indonesia's gross domestic product (GDP). Not only that, he continued, young and women's leadership has also shown positive progress.

Last year, continued Erick, female leadership on the board of directors had reached 15 percent of the 25 percent target and young leadership had also achieved 5 of the 10 percent target in 2023.

"Of course we will continue to carry out this transformation so that SOEs can increasingly provide maximum contributions to Indonesia and become global players", said Erick.

According to Erick, the results of this transformation show that the efforts made so far are on the right track, and need to be continued so that SOEs can carry out their roles as value creators and agents of development more optimally, and provide real benefits for the country and society.

"For the first time, during the current leadership period, the Ministry of SOEs issued a Consolidated Financial Report which is the first step towards implementing better good corporate governance", he said.