Jakarta | President Joko Widodo has requested that all State-Owned Enterprises (BUMN) become the spearhead of the national economy for the welfare of the people, considering that Indonesia has entered the era of economic competition within the ASEAN Economic Community (MEA).
"We want to encourage BUMN to act as a locomotive. We also want BUMN not only to think about profit and loss but also about the multiplier effect for the welfare of the people," said Jokowi in a limited meeting on BUMN Holding at the Presidential Office on Monday (29/2/2016).
Jokowi stated that BUMN must enhance its excellence as a state-owned company to compete with foreign countries. Therefore, he instructed the Minister of BUMN and relevant parties to create concrete steps to make state-owned enterprises superior in global competition.
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"BUMN should not only be strong at home but also dare to compete abroad. That is why I request a clear roadmap to realize BUMN that is strong, agile, and brave enough to face this competitive era," he said.
Jokowi ordered the development of a roadmap to encourage BUMN to compete with foreign countries, whether through a super holding/holding structure or starting with a virtual holding. If necessary, the old work culture in BUMN must be completely overhauled.
"This must be decided immediately so that BUMN's strength and agility can truly be implemented, especially in facing MEA through restructuring steps. Then, focus on their business, and if necessary, conduct organizational restructuring or a total transformation of the daily work culture in BUMN. With these steps, I am confident that our BUMN will have competitiveness," emphasized Jokowi.
As is known, the Ministry of BUMN targets the total assets of 118 state-owned companies in 2016 to reach Rp 6,240 trillion, an increase of 40.27 percent compared to 2015, which was Rp 4,577 trillion.
In an effort to utilize Economic Policy Package V, in 2015, 53 BUMN and 19 subsidiaries conducted asset revaluation, increasing total assets from Rp 1,047 trillion to Rp 1,355 trillion. In 2016, another 29 BUMN conducted asset revaluation, contributing Rp 8.6 trillion in tax revenue to the state. The 29 BUMN conducting asset revaluation include PLN, Pegadaian, Sucofinfo, Asuransi Jasa Indonesia, Waskita Karya, Askrindo, Perum Jamkrindo, Reasuransi Indonesia Utama, Dahana, Biro Klasifikasi Indonesia, Rajawali Nusantara Indonesia, Pelindo III, Boma Bisma Indra, Balai Pustaka, Barata Indonesia, Dok dan Perkapalan Surabaya, Danareksa, Industri Kapal Indonesia, Perum Perhutani, LEN Industri, ASDP Indonesia Ferry, PP Berdikari, Pindad, Indra Karya, Perum Navigasi, Pertani, INTI, Bahana Pembiayaan Usaha Indonesia, and Yodya Karya.
In 2016, the total revenue of 118 BUMN in Indonesia is estimated to reach Rp 1,969 trillion, up from Rp 1,728 trillion in 2015. Additionally, net profit in 2016 is projected to reach Rp 172 trillion, an increase from the 2015 profit forecast of Rp 150 trillion. Throughout 2016, all BUMN allocated capital expenditure (capex) for investment purposes amounting to Rp 404.8 trillion, a 51 percent increase from the 2015 capex of Rp 268.3 trillion.
During 2016, there were 62 strategic projects undertaken by BUMN scheduled for "groundbreaking" with a total value of approximately Rp 347.22 trillion. Meanwhile, 73 strategic projects were set for completion and inauguration in 2016, totaling Rp 109.65 trillion. (Source: suara.com)