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Govt to merge SOEs with low revenue
SOE Ministryâs deputy on mining, strategic industries and media, Fajar Harry Sampurno said that the ministry is reviewing a plan to merge State-owned enterprises (SOEs) with annual revenue less than Rp1 trillion, as it reflects financially underperforming company that lacked efficiency
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SOE Ministryâs deputy on mining, strategic industries and media, Fajar Harry Sampurno said that the ministry is reviewing a plan to merge State-owned enterprises (SOEs) with annual revenue less than Rp1 trillion, as it reflects financially underperforming company that lacked efficiency. (Kontan/Ahmad Fauzie) (SOEs) with annual revenue less than Rp1 trillion, as it reflects financially underperforming company that lacked efficiency. (Kontan/Ahmad Fauzie)
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span class="inline inline-center">SOE Ministry's deputy on mining, strategic industries and media, Fajar Harry Sampurno said that the ministry is reviewing a plan to merge State-owned enterprises (SOEs) with annual revenue less than Rp1 trillion, as it reflects financially underperforming company that lacked efficiency. (Kontan/Ahmad Fauzie)
The government is considering to merge state-owned enterprises (SOEs) with annual revenue of less than Rp 1 trillion (US$72.7 million) into similar other SOEs to have fewer but stronger state-run corporations.
Annual revenue below Rp1 trillion reflected financially underperforming SOEs that lacked efficiency, warranting mergers, said the SOE Ministry's deputy on mining, strategic industries and media, Fajar Harry Sampurno.
"We are considering issuing a regulation regarding the ideal revenue that SOEs must achieve, with a minimal amount of Rp 1 trillion per year. A company with gloomy prospects should not be maintained as an SOE," he said in Subang, West Java, on Thursday.
Fajar said the merger plan was in accordance with President Joko 'Jokowi' Widodo's idea of building bigger, stronger and healthier SOEs.
He further explained that eight SOEs in the industries under his supervision (mining, strategic industries and media) were under assessment for mergers. He declined to name the companies. (ags)(+)
