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Jokowi: Slow SOEs will be left behind

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2 November 2018 10:08 WIB

Indonesia President Joko Widodo waits for arrival of Saudi Arabia Foreign Minister Adel bin Ahmed Al-Jubeir at presidential palace in Bogor, Indonesia, October 22, 2018. Indonesia, the world's largest Muslim-majority country, maintains close ties with Saudi Arabia and has "expressed concern" over the killing at the Saudi consulate in Istanbul, which the kingdom initially denied for weeks. REUTERS/Beawiharta

TEMPO.CO, Jakarta - President Joko `Jokowi` Widodo said that SOEs need to keep up with technological development and digital advancement, or they would get left behind.

Jokowi made the statement when launching the opening of The Telkom Hub, the office park of Telkom Group, in Jakarta on Thursday, November 1.

The president said that business competition had changed since a decade ago when the world's top 10 companies were dominated by banks and oil companies such as Citi Group, Bank of America, and Exxon Mobil. Today, 5 of the world's top 10 companies are IT-based firms including Apple, Facebook and Microsoft.

"This is just a small example of how technological advancement had changed our world. Industrial Revolution 4.0 is happening and it is bringing a massive, rapid change," he said.

Jokowi added that today SOEs cannot act as a "stiff" company with complicated bureaucracy in making decisions.  

"The formula today is no longer 'asset-heavy' but 'asset-light'. We cannot be proud and content over huge assets only," the president said. "Today, we look at brand value. There are only two options; innovate, or get left behind."

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