The government has asserted that the establishment of a state-owned enterprise (SOE) holding company is aimed at improving national competitiveness.
“We want to improve our competitiveness. It is, however, impossible to do that by focusing only on one SOE. Instead, it needs to involve several SOEs,” stated special staff to the State-Owned Enterprise Minister, Wianda Pusponegoro, at the Forum Merdeka Barat 9 ( FMB9 ) discussion that was themed Mengapa perlu holding BUMN? (Why need a SOE holding company?). The forum was held at the Communication and Information Ministry on Dec. 5.
The establishment of the sectoral SOE holding company, she added, aimed at strengthening SOEs and improving their performance.
“The final objective is to ensure SOEs can serve people better, because at the end of the day, SOEs belong to the people,” she said.
The sectoral SOE holding company is needed to ensure independent financing, so that SOEs do not rely on the state budget to accelerate and expand projects, improve capability or synchronize operations, said Wianda.
“The establishment of the SOE holding company will ensure SOEs are strong and agile,” said Wianda at FMB9 discussion.
She stated that establishing a SOE holding company is not the same as selling SOEs to the private sector because the government remains as the majority shareholder. Moreover, the management of the SOE is still accountable to the government.
“When the holding company is established, it will not be the case that the government will then play a smaller role, because the holding company is entirely owned by the government. The government has full control,” she explained.