President Jokowi agrees on holding companies for SOE

President Jokowi agrees on holding companies for SOE

Rini Soemarno. (ANTARA/Wahyu Putro A.)

God willing, this year. We are analyzing the legal process."
Jakarta, Feb 29/2 (Antara) - Minister for state-owned enterprises (SOE or BUMN) Rini Soemarno said President Joko Widodo (Jokowi) very much agrees with the program of forming holding companies for BUMNs to improve efficiency and to strengthen their financing capacity.

Under that system state companies no longer depend on state budget for financing for their project, Rini said.

"This is the most important thing," Rini said after attending a limited cabinet meeting on BUMN Holding at the presidential office here on Monday.

She said the main objective of the establishment of holding companies is cost efficiency.

She said holding system is to be made in each sector including financial sector, and construction sector especially for toll road development.

She said there are two phases of developing holding system - first by classifying BUMN operating in double business sectors and second by separating assets for efficiency.

She said there are state companies operating in double business lines, citing almost all state companies have hotels.

"We separate the assets that they could operate more efficiently," she said.

She said the BUMN ministry hopes to implement the program of forming holding companies for BUMN this year.

"God willing, this year. We are analyzing the legal process," she said.

At the meeting President Jokowi said he wanted immediate decision on the program that BUMNs are stronger and more active especially in facing the Asean Economic Community scheme.

The president was more interested in BUMN playing the role of a driving locomotive rather than making profit.

"BUMN must not think only of profit and loss , but how to give greater multiplier effects," he said.

Jokowi also wants BUMNs to be more aggressive in expanding operation not only in the country but also abroad.

State companies in a number of sectors already have holding comoanies like PT Pupuk Indonesia for fertilizer manufacturers and PT Semen Indonesia for cement producers.
(Uu.H-ASG/H-YH)

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