Toto Pranoto in Economic Challenges, Metro TV “Write-off Sickly SOEs”

Toto Pranoto in Economic Challenges, Metro TV “Write-off Sickly SOEs”

Nino Eka Putra ~ PR FEB UI

DEPOK – (26/10/2021) In the midst of difficult economic conditions, some State-Owned Enterprises (BUMN) are still asking for capital participation. President Joko Widodo asked to close down SOEs that were sickly because they burdened the state’s finances. Capital injections for ailing SOEs are considered to only coddle state-owned companies and hinder ongoing transformation efforts. These “sick” SOEs, which should be able to contribute to state revenues, are in fact a burden and continue to ask for capital injections. Has the transformation of SOEs gone as expected?

This was discussed with the resource persons, BUMN Observer and FEB UI Lecturer, Dr. Toto Pranoto, Member of Commission VI DPR RI, Marwan Jafar, Former Minister of SOEs, Dahlan Iskan, and Deputy for Finance and Risk of the Ministry of SOEs, Nawal Nely, in the Economic Challenges program, Metro TV. The event was themed “Write-off Sickly SOEs ” hosted by host Friderica Widyasari Dewi, on Tuesday (26/10/2021).

Toto Pranoto said the government’s plan to close 7-12 BUMNs was considered reasonable. This is because several SOEs have stopped operating and are not competitive (their products and services can be replaced by other business operators), and their bottom line is in the red. Currently, the number of SOEs has been downsized to 40. Although the number of SOEs is now small, it is hoped that their performance will be healthier so that the government will have SOEs that are globally competitive.

State-owned companies have duties other than value creators and profit orientation by considering risk as well as development agents. If they do their task well, SOEs get additional income. Later, part of the income can be reallocated to finance public service obligation activities.

“In the future, SOEs must have the ability to adapt quickly to change and be agile. To be agile, several conditions must be met. These are that BUMN must have a strong leader who brings change and have quality human resource capabilities (HR). In addition, amendments to the BUMN Law must refer to the role model that positions the alignment between BUMN companies and the BUMN Ministry so they becomes stronger.” Toto said in closing his session. (ts)

(am)