The next step is to ensure how we will face challenges amid the (uncertainty) in global conditions by bolstering food and energy resilience, healthcare, digital resilience, improving financial inclusion, as well as infrastructure developmentJakarta (ANTARA) - The Ministry of State-owned Enterprises has encouraged thorough transformation in state companies through the AKHLAK core values and clustering to refocus business development and performance.
State companies in Indonesia are united with the uniform core values summarized in AKHLAK, comprising trustful, competent, harmonious, loyal, adaptive, and collaborative values.
First Deputy Minister Pahala Mansury said in a statement here on Wednesday that those changes would be causal to positive improvement in financial performance in state-owned enterprises, which during the period from 2020 to the third quarter of 2022 had reached Rp1,198 trillion.
"The next step is to ensure how we will face challenges amid the (uncertainty) in global conditions by bolstering food and energy resilience, healthcare, digital resilience, improving financial inclusion, as well as infrastructure development," Mansury noted.
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He said that apart from encouraging state-owned enterprises to be profitable, the government also encouraged transformation in the aspect of work culture and business model, as well as investment in various sectors.
Those measures will be important to face global challenges, such as decarbonization, wherein the fertilizer industry was the largest contributor to emissions, he noted.
To ensure the industry's sustainability, the deputy minister remarked that business model innovation is deemed necessary, such as by advancing energy transition to renewable sources and developing a new type of fertilizer supported by sustainable technology.
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"We hope that by changes in the business model and risk management, state-owned enterprises could have a stronger and healthier balance to develop the organization in a better direction," Mansury stated.
Earlier, State-owned Enterprises Minister Erick Thohir noted that President Joko Widodo had commended the transformation process, which made state companies more professional, transparent, and accountable.
Thohir also expressed hope that the board of directors of state companies would continue pushing for competitiveness consistent with the economic growth encouraged by the government.
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Translator: Aji Cakti, Nabil Ihsan
Editor: Fardah Assegaf
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