Minister Instructs SOEs to be Conglomerates
29 May 2015 14:20 WIB
TEMPO.CO, Jakarta – State-owned Enterprises Minister Rini Soemarno ordered state companies to expand their businesses by turning into conglomerates in order to compete globally.
"There needs to be a synergy co our SOEs can be conglomerates. That way, [the companies] will be able to operate on a large-scale internationally," she said yesterday.
A number of SOEs that are the top of their sectors are vying to expand businesses in both domestic and overseas markets. Several mining companies are targeting expansion in ASEAN countries, such as Semen Indonesia, PT Timah, and Bukit Asam. Semen Indonesia has already built a cement plant in Vietnam and is now aiming to do the same in Myanmar and Malaysia.
In the banking sector, Bank Negara Indonesia and Bank Mandiri are eyeing the Malaysian and Singaporean markets, while BNI has branched out to South Korea and Myanmar.
Several construction companies are also seeking to tap Myanmar's market. Meanwhile, Wijaya Karya has built a hotel near Masjid Al-Haram in Saudi Arabia.
Semen Indonesia corporate secretary Agung Wiharto said Minister Rini's instruction is in line with the company's business plans.
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