President Joko Widodo Reminds About the Formation of BUMN Holding and the Utilization of Opportunities
President Joko Widodo emphasized the plan for the formation of BUMN (State-Owned Enterprises) holding. He wants the process to be completed quickly but still carefully executed.
The President conveyed this message to hundreds of BUMN executives during the opening of the Executive Leadership Program (ELP) for BUMN directors at the State Palace, Jakarta, on Wednesday, January 25, 2017.
"I emphasize, be careful with the calculations. Move quickly, but ensure thorough calculations. Do not merge just for the sake of merging, do not grow just for the sake of being big. The direction and purpose must be good, but the process must be carried out very carefully. The future management, supervision, governance, and efficiency must all be well-calculated," he explained.
The President also instructed that the public should be involved in the formation process of the BUMN holding. He called for transparency in the process so that all parties could provide input for the betterment of BUMN in the future.
"So, involve many institutions, be open, so that everyone can give constructive input for the improvement of our BUMN. I am very optimistic that we will improve," he affirmed.
Furthermore, the President provided an overview of several business opportunities that have not yet been explored by BUMN in Indonesia. According to him, there are still many opportunities that have not been considered before.
"For example, BPO (business process outsourcing), which has never been seriously looked at. But in the Philippines, from what I read, the annual turnover can reach USD 25 billion. It also employs around 130,000 young workers. This is a service industry," he said.
The President emphasized that such new opportunities should be seriously pursued. Of course, these opportunities require support from BUMN to grow further.
"We must start exploring these areas instead of sticking to conventional businesses that we have been engaged in for decades. Meanwhile, there are promising new business opportunities that require pioneers. BUMN has a chance to enter this space," he explained.
However, President Joko Widodo reminded that in conducting business, BUMN should prioritize the development of small and medium enterprises. The gap between the rich and the poor remains wide, and the government is committed to reducing this disparity.
"Once again, this is about alignment and commitment. I want to remind everyone, do not forget," he stated.
Concluding his speech, the President also touched on the issue of potential criminal offenses among BUMN executives. He firmly warned his staff to be cautious in carrying out their duties. The President hopes that in the future, there will be no more criminal cases involving BUMN executives.
"Why am I reminding you of this? Because I care about all of you. I do not want you to get caught in trouble. I want our BUMN to leap forward, and I see opportunities for that," he concluded.
The event was also attended by Coordinating Minister for Economic Affairs Darmin Nasution, Minister of BUMN Rini Soemarno, Cabinet Secretary Pramono Anung, Minister of Finance Sri Mulyani Indrawati, Minister of Public Works and Public Housing Basuki Hadimuljono, and Minister of Maritime Affairs and Fisheries Susi Pudjiastuti.