"During the last 3.5 years, we carried out downsizing and focused on business (targets). It was aimed at creating a business scale that can effectively compete in the future," Deputy Minister II of State-Owned Enterprises Kartika Wiroatmodjo said here on Monday.
State-owned enterprises have two duties—public service provision and value creation, and the ministry is aiming to ensure that the two duties can be carried out effectively by combining enterprises, he explained.
"We see from some past experiences, from the merger we did, like Pelindo after being merged and BSI after being merged, integration happened quickly," Wiroatmodjo pointed out.
Within a year, all the operational functions—such as IT and human resources—could be effectively integrated, followed by improvement in services and market share, he added.
"I think the main message is that do not make this a final destination, but the beginning of a process to carry out integration and pursue development in the future," he said.
According to State-Owned Enterprises Minister Erick Thohir, a transformation would allow the companies to compete on the global scale.
Transformation at the SOE level is consistently being pursued in order to help make businesses competitive and develop domestically and globally in a positive manner, he said.
The ministry supports the transformation so as to improve the efficiency, competitiveness, and transparency of these companies, Thohir added.
The minister also informed that his administration has undertaken some measures to improve companies’ governance, push for innovations, and develop financial management.
Currently, state-owned enterprises have actively established partnerships with domestic and foreign private sectors across 12 clusters, he noted.
There are currently 307 private sector entities that have been made partners, with 60 of them being multinational companies, he revealed.
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Translator: Aji Cakti, Mecca Yumna
Editor: Rahmad Nasution
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