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Jokowi Aims to Emulate Temasek in SOE Holdings Establishment

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1 March 2016 15:10 WIB

TEMPO.CO, Jakarta-President Joko Widodo has called for the establishment of state-owned enterprise (SOE) holdings to be carried out prudently and seriously by taking energy effectiveness into account. “To make SOEs more agile and not burdened by non-professional issues,” said the President as conveyed by Cabinet Secretary Pramono Anung when giving a press release to journalists after attending a limited meeting at the President’s office, Jakarta, Monday, February 29, 2016.

According to Pramono, the President had received feedbacks from SOE Minister Rini Soemarmo which had been corroborated by other ministries regarding the SOE holdings to make it healthier and more robust. The establishment of holding companies is aimed to prevent SOE from past practices, such as susceptibility to certain political parties’ persuasion.

The SOE holdings have been discussed are infrastructure, banking, mining, new energy and energy security. “The plan will be conveyed in detail by the relevant ministries after finalization,” he said.

Pramono said that in the long run SOEs are expected to have the same potency as Temasek, Singapore, and Malaysian government-owned enterprises. “Synergy could enhance the process of SOE holdings establishment.”

The process of SOE holdings establishment is expected to be carried out naturally. “In the process, government regulations as derivatives of laws will be amended,” he noted.

SOEs are expected not to receive subsidy from the State Budget after the holding establishment. “They will be self-sufficient and grow bigger. They will contribute in income, both from profit and taxes, to the state,” he said.

SETIAWAN ADIWIJAYA



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