State-owned Enterprises as Global Players

The government believes the holding strategy is the best option to push state-owned enterprises into the global market. This strategy requires commitment and consistency on the part of the government, as well as the support of other stakeholders and the House of Representatives.

KOMPAS/DIDIE SW

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The government believes the holding strategy is the best option to push state-owned enterprises (SOEs) into the global market. This strategy requires commitment and consistency on the part of the government, as well as the support of other stakeholders and the House of Representatives (DPR).

Why is the sectoral holding (parent company) needed? According to the SOEs Ministry, there are four reasons. First, rightsizing SOEs sectorally through synergy. Second, the transformation of SOEs as agents of development. Third, increasing competitiveness in global markets. Fourth, accelerated growth of SOEs through inorganic growth. According to Article 1 of Law No. 19/2003, SOEs are business entities that are entirely or partly owned by the state through direct participation derived from separated state assets. The position of the government as a regulator and shareholder through the SOEs Ministry as well as the assignment of SOEs as development agents confirms the government\'s mission to make SOEs play a big role in the national economy.