Net profit climbed by 356 percent after SOE transformation: Thohir

Net profit climbed by 356 percent after SOE transformation: Thohir

State-Owned Enterprises (SOEs) Minister Erick Thohir noted on the 57th anniversary of RNI and the commemoration of World Food Day in Jakarta, Tuesday. (19/10/2021). (ANTARA/screenshot)

Last year, our net income in the first semester had reached Rp6 trillion and was cumulatively recorded at Rp13 trillion in a year. This year, it has reached Rp26 trillion in the first semester due to the transformation that we conducted
Jakarta (ANTARA) - State-Owned Enterprises (SOEs) Minister Erick Thohir highlighted that the transformation of SOEs conducted in recent years improved performance and raised net profit up by 356 percent in the 2021 first semester, from the previous year.

"Last year, our net income in the first semester had reached Rp6 trillion and was cumulatively recorded at Rp13 trillion in a year. This year, it has reached Rp26 trillion in the first semester due to the transformation that we conducted," Thohir noted at the 57th anniversary of RNI and the commemoration of World Food Day here, Tuesday.

Hence, the state firm will focus on transforming the food sector at the end of 2021 to 2022, he noted.

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Thohir expressed his seriousness in monitoring food in the next year, as it would serve as a driving force for the Indonesian economy in future through transformation of the holding of food SOEs

The minister would also not hesitate to reshuffle the ranks of directors and commissioners in food SOEs if their performance was deemed unsatisfactory.

"As this has happened often, I will dismantle and replace those, who do not participate in this transformation," he affirmed.

Of the 20 state firm directors invited to meet with President Joko Widodo on Oct 18, some 40 percent were the directors selected by the earlier minister and were not replaced owing to their good performance.

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In accordance with President Joko Widodo's direction, Thohir spoke of having conducted transformation of SOEs by downsizing the company and focusing on the business fields that were earlier inefficient.

In addition, the minister replaced the human capital board of directors with a better one, so that several state-owned companies can generate profits for the state.

"SOEs are too big, so it is difficult to monitor. There are also too many types of businesses, so they do not have focus. Hence, it is impossible for us to transform in terms of the business model or the type of business without human capital transformation," Thohir affirmed.


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