Press Release of the Ministry of SOEs
Number: PR-01/S.MBU.3/1/2017
January 25, 2017
SOE Leadership Must Have Strong Business Intuition and a Pro-People Mindset
Leadership is a crucial and strategic aspect of any organization. Recognizing the vital role of leaders as the driving force of a company, the Ministry of State-Owned Enterprises (SOEs) organized the Executive Leadership Program (ELP), which was inaugurated by President Joko Widodo at the State Palace in Jakarta on January 25. Among the speakers at the event were Minister of SOEs Rini M. Soemarno, Coordinating Minister for Economic Affairs Darmin Nasution, Coordinating Minister for Political, Legal, and Security Affairs Wiranto, Minister of Finance Sri Mulyani, National Police Chief General Tito Karnavian, and Governor of Lemhannas Agus Widjojo.
"ELP is a leadership forum designed to develop SOE human capital with strong character, integrity, and a conscience-driven approach. This program aims to produce visionary, professional, and nationally-minded SOE leaders. SOE leaders must not only have sharp business intuition but also be pro-people and globally aware," explained SOE Minister Rini M. Soemarno.
Minister Rini further elaborated that the ELP aims to enhance the competitiveness of SOEs by fostering synergy among them. Under the theme "Creating Global Leaders for Globalized SOEs!", the ELP seeks to strengthen leadership effectiveness in navigating global competition. This program is crucial as SOEs continue to play a vital role in development and value creation.
The ELP serves as a training program for SOE directors to prepare for holding formations and global competition. The program includes all SOE directors, former SOE directors, CEOs of specific SOE subsidiaries, CEOs of certain minority-owned SOEs, and chief commissioners from seven SOEs: Pertamina, Bank Mandiri, Telkom, Angkasa Pura I, Angkasa Pura II, Pelindo II, and Waskita Karya. Additionally, it is attended by first and second-echelon officials from the Ministry of SOEs.
Minister Rini emphasized that the ELP is expected to further boost the performance of SOEs in supporting national economic growth. With 118 companies across 13 industrial sectors, SOEs continue to collaborate to drive integrated development and accelerate strategic national projects.
During the event, Minister Rini also presented several achievements of SOEs in 2016. "The total assets of SOEs in 2016 reached IDR 6,325 trillion, marking a 9.8% increase compared to 2015. This asset growth was partly driven by increased SOE investments, some of which were funded by additional state capital injections (PMN)," she explained.
According to Rini, Indonesia’s improving economic conditions since the second quarter of 2016 contributed to a 6% increase in SOE revenue compared to 2015. Similarly, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and Net Profit saw respective increases of 11% and 10%.
Rini also highlighted that alongside the revenue growth, SOE losses in 2016 significantly decreased from IDR 11 trillion to IDR 6 trillion, with the number of loss-making SOEs reducing from 21 to 15. "With the improving performance of SOEs, I hope this ELP can serve as a platform to further accelerate SOEs into world-class companies," she stated.
The ELP consists of three sessions: Batch 1 from March 2–4, Batch 2 from March 9–11, and Batch 3 from March 16–18. The program integrates seminars, discussions, and classroom lectures. Participants will receive training on inspirational leadership, business acumen, values, as well as global and national insights. Additionally, the ELP incorporates the 4R concept: Raga (physical exercise), Rasio (intellectual development), Rasa (emotional intelligence), and Ruh (spiritual awareness).
The Forum Human Capital Indonesia (FHCI) has been appointed by the Minister of SOEs as the implementing partner for the ELP. FHCI serves as a communication platform for SOE HR Directors and HR professionals, providing strategic input and policy recommendations for human capital development to the Ministry of SOEs and individual SOEs.
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For further information, please contact:
Imam Bustomi
Assistant Deputy for Executive SOE HR Management
Email: [email protected] | Phone: +62 811-8289-666