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Holding companies needed to fight global competition: Jokowi
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President Joko "Jokowi" Widodo leads a Cabinet meeting at the State Palace in Jakarta recently. (Courtesy of the Presidential Office/-)
P
resident Joko “Jokowi” Widodo has said the establishment of several holding companies is aimed at improving the performances of Indonesia’s state-owned enterprises (SOEs) so they can become world-class companies and increase their role as the prime driver of the country’s economy amid tighter global competition.
As such, the President said, every step in the establishment of the holding companies, which will supervise SOEs in various sectors, must be well-calculated.
During a limited meeting at the State Palace on Friday, Jokowi reiterated that SOEs should be able to play a role as the locomotive of the national economy and help realize the government’s road map toward the establishment of strong SOEs. It is therefore crucial to ensure that every stage of the establishment of an SOE is calculated properly, starting from the preparation phase to its formation, he went on.
"The establishment of the holding companies should not be merely seen as a strategy to cut state capital injections [...] It must be understood that the holding companies are intended to strengthen the role of SOEs amid tighter competition, especially on the global level," Jokowi said.
"It is hoped that SOEs can become world-class companies and I expect to be run with a paradigm that puts an SOE as a business corporation, as mandated in a Constitutional Court decision," he went on.
As reported earlier, the State-Owned Enterprises Ministry plans this year to create two more holding companies for two strategic sectors, namely food commodities and maritime affairs. The two holding companies will be established immediately after the government completes the establishment of five holding companies set to operate in five sectors, namely mining, energy, financial services, property and toll roads. (ebf)
