90% percent of SOEs affected by COVID-19: minister

90% percent of SOEs affected by COVID-19: minister

Minister for State-Owned Enterprises (BUMN), Erick Thohir. (ANTARA FOTO/Rivan Awal Lingga/wsj)

Jakarta (ANTARA) - Minister for State-Owned Enterprises (BUMN), Erick Thohir, has said that 90 percent of state-owned companies have been affected by the COVID-19 pandemic.

"As many as 90 percent of SOEs have been affected by COVID-19, only 10 percent have survived," Minister Erick said during a video conference on Tuesday in Jakarta.

He stated only telecommunications, pharmaceuticals, and plantation sector companies have not been affected by COVID-19.

Therefore, he continued, a number of steps have been prepared to strengthen SOEs, one of which is increasing efficiency by streamlining 27 BUMN clusters to 12 clusters so they are more focused on their core business.

"We are preparing a road map for energy security, food, and health. There will be 12, not 27 clusters. For example, pharmaceutical SOEs and hospitals will come under one cluster,” he explained.

Post the COVID-19 pandemic, challenges will be seen in three areas, namely, technology, logistics, and Indonesia’s ability to remain independent and maintain the supply chain, the minister noted.

Earlier, Erick had stressed that cluster downsizing would be very important for BUMN in the face of global competition.

He said he believes the competition will get tougher after the COVID-19 pandemic ends.

In addition to cutting the number of clusters, Erick said he will also strengthen BUMN sub-holdings, which will focus on the common core business of each BUMN.

"We are now building sub-holdings, the sub-holdings have no relationship with the cluster, because the number of sub-holdings is more than the cluster," he informed.

At present, Erick said, the BUMN Ministry oversees 142 companies and 800 subsidiary businesses of BUMN.

As part of the process of forming sub-holdings, mapping has been carried out since the end of 2019 and continues to this day, the minister said. (INE)

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