However, I have told the management not to become complacent as it is important to keep advancing.
Jakarta (ANTARA) - State-owned steel maker PT Krakatau Steel and plantation holding company PT Perkebunan Nusantara III (PTPN) are proofs of successful transformation of the state-owned enterprises (SOEs), SOEs Minister Erick Thohir has said.

"Amid the restructuring process, Krakatau Steel has to go through three stages. Currently, it has succeeded in passing the first and second stages. In addition, regarding its performance, the company, which previously experienced losses for the last eight years, has currently made a profit of Rp800 billion,” he noted.

“However, I have told the management not to become complacent as it is important to keep advancing," he said at the inauguration of the Hot Strip Steel Mill 2 of PT Krakatau Steel on Tuesday.

In the second quarter of 2021, PTPN managed to record a 37-percent increase in revenue and book a profit of Rp1.4 trillion although it was predicted earlier that the company would record a loss of Rp1.2 trillion, he informed.

The transformation of SOEs is highly necessary so that they can become more professional, competitive, and profitable world-class companies, the minister explained.

Moreover, it has to be done to provide better services to the community, create more employment, and contribute more profit to the state revenues, he said.

Related news: Minister Erick Thohir outlines four key areas of SOE transformation

The transformation process ranges from the restructuring of SOEs, forming holdings and sub-holdings, to establishing strategic industrial clusters, he said.

In fact, the restructuring of PTPN and Krakatau Steel has successfully improved their condition from loss-making to profit-making companies as well as aided their transition from conventional to modern companies, the minister said.

Hence, the corporations have been able to help suppress imports and strengthen the nation's economic resilience, he said.

Earlier, Thohir had said that total transformation of all SOEs must be conducted in keeping with the post-COVID-19 situation as every aspect may change.

Hence, the government will not only focus on restructuring the SOEs’ business model, but also improve their efficiency and business innovations as well as to conduct human capital transformation, he added.

Furthermore, the minister has urged all stakeholders not to give up dealing with ‘unhealthy’ SOEs, saying ‘unhealthy’ corporations can be restored with strong determination and mutual cooperation in solving problems together.

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Translator: Aji Cakti, Uyu Liman
Editor: Rahmad Nasution
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