Because it will push logistics costs to be lowered, (improve) passenger safety.
Jakarta (ANTARA) - Minister of State-Owned Enterprises (SOEs), Erick Thohir, will merge state-owned shipping company PT Pelni and PT ASDP Indonesia Ferry with state-owned port operator Pelindo.

"Because it will push logistics costs to be lowered, (improve) passenger safety. Everything will be synchronized for the (shipping of) passengers and goods that sometimes were separated," Thohir explained here on Tuesday.

With better port management, the running of Pelni and PT ASDP Indonesia Ferry is expected to improve. He revealed that Pelindo will become the holding company after the merger.

As previously reported, Minister Thohir is optimistic that the number of SOEs would be reduced to 30 so that they can focus on their respective duties.

Since the beginning of his tenure as the SOEs Minister in 2019, Thohir has moved to lower the number of SOE corporations. In June 2020, the SOEs Ministry reduced the number of SOEs from 142 to 107 entities.

Earlier this year, Thohir announced plans to merge seven state construction companies into three larger firms. The seven companies are Hutama Karya, Waskita, Pembangunan Perumahan (PP), Wijaya Karya (Wika), Brantas Abipraya, Adhi Karya, and Nindya Karya.

The step was carried out as part of the SOE restructuring program, which aims to improve the efficiency and effectiveness of their performance. Currently, the number of SOEs is pegged at 41.

In addition, Thohir emphasized that SOEs must uphold three pillars. First, they must become healthy corporations in order to contribute to state revenue through taxes and dividends.

Second, they must contribute to economic growth, and third, they must become the drivers of the people's economy as 92 percent of ultra-micro and micro business loans in Indonesia are distributed by SOEs. (INE)

Related news: ASDP transported 387,204 passengers to Java Island on April 11-14

Related news: Pelindo, Resorts World Cruises agree to boost tourism

Related news: Pelindo invites ASEAN ports to cooperate in reducing logistics costs



Translator: Aji C, Kenzu
Editor: Atman Ahdiat
Copyright © ANTARA 2024