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Dream - Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed that his ministry has designed a roadmap for the 2024-2034 period regarding the consolidation plan of state-owned red plate companies, including reducing the number of state-owned companies to 30. "If possible, the number of state-owned companies should be around 30. Currently, it's 41 and it's only this year ... In the future, it will be around 30," said Erick Thohir as quoted from Liputan6.com, Thursday, March 7, 2024.
Since taking office in 2019, Erick has planned to reduce the number of state-owned enterprises (BUMN). In June 2020, the Ministry of State-Owned Enterprises reduced the number of its entities from 142 companies to 107 companies.
A few time ago, Erick also openly discussed the merger and dissolution of 74 subsidiary and affiliated companies of state-owned enterprises (BUMN). Some of them are included in the ecosystem of Pertamina, PTPN, and Telkom Indonesia.
"74 State-Owned Enterprises (BUMN) Cut by Erick Thohir"
Erick Thohir detailed the amount of cuts made from the three major companies. Among them, 26 companies from Pertamina, 24 companies from PTPN Group, and 13 companies from Telkom.
Erick asserts that inefficiency in state-owned enterprises (BUMN) should not occur, because as the financial locomotive of the BUMN economy, they must be strong and healthy.
"Keep doing it as long as there is no efficiency. This is only 74 (companies), we will continue. This is what I explained earlier, as far as I remember, it is in Telkom, Pertamina, and PTPN. Surely there are still many other things that are inefficient, we must do it,""
kata Erick.
Erick is reluctant to let the state-owned red plate company become too bloated as it may burden the performance of state-owned enterprises. Therefore, future efficiency is needed to increase its contribution. "There are too many inefficient and ineffective shell companies. So, what's the point of having them? Sometimes, the holding company is healthy but its subsidiaries drain profits instead of contributing to the holding company. This is what we need to dismantle, stop, and reduce," said Erick.
"Company Merger"
To support the reduction efforts he is undertaking, in addition to dissolving the 74 companies earlier, Minister Erick also carried out mergers in several state-owned companies. He believes that companies with the same objectives are better off being merged.
As an example, companies in the fisheries sector include PT Perikanan Nusantara (Persero) with Perum Perikanan Indonesia. Then, BGR Logistics with PT Perusahaan Perdagangan Indonesia (Persero). Furthermore, Energy Management Indonesia is incorporated into PT PLN (Persero) for the development of Renewable New Energy.
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