Toto Pranoto: Reducing the Number of SOEs to Improve their Health.

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Toto Pranoto: Reducing the Number of SOEs to Improve their Health.

 

Delli Asterina ~ FEB UI Public Relations Officer

DEPOK, 9 June 2020 – Republika.co.id published an interview with Toto Pranoto, a lecturer at FEB UI who is also Associate Partner  of the SOE Research Group, LM FEB UI

Below is the article entitled Reducing the Number of SOEs to Improve their Health.

State-owned enterprises (SOEs) observer Toto Pranoto considered SOE Minister Erick Thohir’s move to reduce the number of SOEs is important as a follow-up of and to accelerate the effort that was started by former SOE Minister Rini Soemarno.

“This important because there are hundreds of SOEs but they have reached a Pareto optimum state, with only a small group of SOEs being truly productive and competitive. The rest give a relatively poor performance,” Toto told Republika in Jakarta, Tuesday (9/6).

He expected the smaller number of SOEs can increase the effectiveness of the Ministry’s supervision of state-owned companies as the span of control has become smaller.

Toto said the Ministry of SOEs could keep SOEs that are highly sought after by the public and are relatively healthy. Meanwhile, SOEs with low public utilization and are unhealthy should be liquidated immediately. Toto added that the Ministry of SOEs should also pay attention to SOEs that contribute to food security, energy, health and national strategic programs as a basis for determining the future SOE posture.

“In the future, maybe we will have fewer, healthier and more competitive SOEs so that they can compete at the regional and even global levels,” said Toto. (hjtp)

Source: https://republika.co.id/berita/qbnsnm423/effficiency-jumer-bumn-diharap-buat-bumn-lebih-sehat

(lem)