Erick Thohir to Shut Off SOEs Running Sector outside Business Key

TEMPO.CO, Jakarta - State-Owned Enterprises (SOE) Minister Erick Thohir said several state-run firms are operating sectors outside of their core business, such as PT Pengembangan Armada Niaga Nasional or PT PANN.

Erick mentioned that PT PANN was operated as a ship financing company, but it expanded its business sector into leasing aircraft. “So we have to restore the business core of such companies, either merge it or close it down, it cannot stand alone because it is having too many businesses,” said the minister at Pacific Place, Jakarta, Wednesday, December 4.

However, Erick underlined that it would not hamper him from creating employment even if such companies are liquidated or closed. He reasoned if the business is as effective as the core, it will require more human resources.

Previously, the minister revealed that last year, only 15 out of 142 SOEs contributed to state revenue, which valued 76 percent of the total figure.

“The total revenue from SOEs amounted to Rp210 trillion, but 76 percent of which came from just 15 companies,” said Erick during a meeting with the House of Representatives' (DPR) Commission VI on Monday, December 2.

Erick Thohir mentioned that those 15 firms are operating in the sector of telecommunication, banking, as well as oil and gas.

MUHAMMAD HENDARTYO