Toto Pranoto Discusses SOE Performance Improvements at BPEA, Berita Satu TV, and CNBC Indonesia
DEPOK – (23-24/9/2021) President Joko Widodo emphasized that the transformation of SOE performance improvement must be carried out by the Ministry of SOEs. This is done so that state-owned companies in Indonesia can survive and be able to compete globally. Observer of the BUMN Research Group of the Management Institute of FEB UI and Lecturer of FEB UI, Toto Pranoto in the Business Performance Excellence Award (BPEA), Hot Economy on Berita Satu TV, and Profit on CNBC Indonesia discussed what performance issues of SOEs should improve.
BPEA: Hit by Covid-19, SOEs’ Revenues and Profits Drop in 2020
Liputan6.com, Jakarta – (23/9/2021) The performance of SOEs has been hard hit by the Covid-19 pandemic. Starting from revenues to profits, they shrank sharply when the pandemic hit Indonesia.
This was revealed by the Associate Director of the BUMN Research Group, Universitas Indonesia Management Institute, Toto Pranoto at the 2021 Business Performance Excellence Award (BPEA) event.
“If we look at the performance in 2019, in 2020, we see that the impact of Covid-19 has occurred since the end of 2019 and continued into 2020, the impact is extraordinary and we see performance in the ability to generate revenue and profit,” he explained at the BPEA 2021 event in Jakarta, Thursday (23/9/2021).
He admitted that in fact the contribution of SOEs in many countries to the global economy in a decade showed an increasing trend.
“Indonesia is listed as one of the countries where the contribution of SOEs to the domestic economy is quite significant,” he explained.
But the performance of SOEs then turned around when Covid-19 entered Indonesia. This can be seen from the income and profits of state companies.
He said that the total assets of SOEs were recorded to have increased from Rp 8,739 trillion in 2019 to Rp 9,295 trillion in 2020.
However, SOEs’ income fell from Rp 2,456 trillion in 2019 to Rp 1,842 trillion in 2020. As a result, SOE’s profit fell from Rp 165 trillion in 2018 to a net profit of Rp 38 trillion.
He said that the current performance of SOEs in Indonesia shows a Pareto condition, where around 80 percent of the total revenue contribution of SOEs is only contributed by about 20 percent of the total companies.
Even though Indonesia has more than 100 SOEs. “This means that many SOEs are not operating optimally,” he explained.
He also said that the government had gradually reduced the number of SOEs with various steps. So that the current total of SOEs is only about 100 companies.
“This needs to be improved in the future so that the productivity of each SOE can be increased in the future,” he asserted.
Source: https://www.google.com/amp/s/m.liputan6.com/amp/4666071/terpukul-covid-19-pendapatan-dan-laba-bumn-anjlok-di-2020
Hot Economy, One TV News: Fixing SOEs
Rifdah Khalisha – Public Relations FEB UI
DEPOK – (23/9/2021) Despite the COVID-19 pandemic, the government continues to intensify efforts to reform State-Owned Enterprises (BUMN). President Joko Widodo emphasized that the transformation of SOEs is a must to create world-class state-owned companies in Indonesia.
It should be noted that President Jokowi has dissolved 3 companies without liquidation and merged them into other SOEs, namely PT Bhanda Ghara Reksa (Persero), PT Pertani (Persero), and PT Perikanan Nusantara (Persero), to improve business efficiency and effectiveness.
In addition, the Ministry of SOEs has also merged Pelindo I, II, III, IV to become PT Pelabuhan Indonesia as of October 1, 2021. Later, it will create 4 sub-holdings according to Pelindo’s business cluster.
In Hot Economy News One “SoE Improvements” on Thursday (23/9), Toto Pranoto, Observer of the BUMN Research Group Management Institute FEB UI, responded to this, “SOEs’ performance is still in a Pareto condition. Currently, the 25 largest SOEs out of the 105 SOEs have been able to generate 90 percent of total revenue and control 70 percent of total assets.”
“In addition, some SOEs look less productive, so it is necessary to take steps to increase, for example the formation of several SOE holding companies. The holding company must be able to provide a higher value than the previous SOE operations when they were still separate. So, it’s not just reducing the number of SOEs.” he said.
According to Toto, the main focus is that holding companies are able to sharpen productivity and show improvement. That way, SOEs have more potential and competitiveness in the international arena.
Watch the full talk show recording via: https://youtu.be/NKbcargRdzs
Profit, CNBC Indonesia: Revision of SOE Law is Important to Improve SOE Performance
Nino Eka Putra ~ PR FEB UI
DEPOK – (24/9/2021) – The decline in the performance of State-Owned Enterprises (BUMN) in terms of productivity, efficiency, and the ability to drive profitability, said SOE observer and FEB UI lecturer, Toto Pranoto, was a problem facing BUMN.
The current state of SOEs is in a Pareto condition, meaning that out of 100 SOEs that can generate good profits, only 20-25 SOEs are able to make a profit. “This shows that there are problems regarding productivity, efficiency, and ability to manage profits, so there is a need for structural improvements to the management of SOEs in order to spur better performance in the future” said Toto Pranoto in the Profit event at CNBC Indonesia with Monica Chua, on Friday. (24/09/2021).
The government through the Ministry of SOEs proposes a change in the management of SOEs as outlined in the amendments to the SOE Law. “Therefore, the revision of the SOE Law is considered important to encourage structural improvements so that performance improves. In addition, the hectic issuance of SOE debt securities is also another issue that must be monitored so that its use can maximize the performance of SOEs.” said Toto Pranoto in closing the session.
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