The establishment of quality SOE holdings must continue if the government wants to improve the performance of the SOEs sector and make the transition to the next government smooth, Pranoto said here on Wednesday.
"The formation of (SOE) holdings can increase value. Therefore, the strategy is no longer (about) quantity but more about quality," he added.
He said that SOEs need to focus on value creation to increase their competitiveness.
"Currently, there are 100 SOEs (although some have become subsidiaries due to their being merged with holdings). Of that number, there are 25 top SOEs that generate more than 85 percent of the total revenue and profit," Pranoto pointed out.
Considering that only the top 25 SOEs have generated 85 percent of the accumulative profit, most SOEs have not performed well, he added.
Pranoto said that the supervision and evaluation process carried out by the SOEs Ministry has been going well.
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Supervision is being carried out to ensure the transparency and suitability of a project so that it can effectively operate and benefit the community.
He said that SOE projects, if operated well, can have a high multiplier effect on the economy.
According to him, the SOEs Ministry is carefully inspecting the projects, for instance, the role of state railway company KAI and state-owned construction company PT Adhi Karya in the operation of LRT, before they can be used by the public.
The Ministry of SOEs is seeking to ensure that all infrastructure projects, especially those in the transportation sector, are integrated so that they can benefit the wider community.
Pranoto recommended debt restructuring and improving the financial structure and capital for construction SOEs that have not performed well.
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Translator: Ganet D, Kenzu
Editor: Yuni Arisandy Sinaga
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