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Jakarta Post

Involving state and regional-owned enterprises

  • Andre Notohamijoyo


Jakarta   /   Tue, July 31, 2018   /  03:44 pm
Involving state and regional-owned enterprises A building owned by state-owned gas subholding company PGN (Courtesy of/State-owned gas subholding company PGN )

National economic development requires the presence of state-owned enterprises (SOEs) in various regions of the country, especially in areas that have not been touched by the private sector.

Although the role of SOEs is needed in these areas, there are limitations that make it difficult for the government to involve SOEs. Budget support, human resources, a lack of regional data and other reasons have also discouraged SOEs from getting involved. Nevertheless, special measures are needed to encourage the development of disadvantaged areas.

Partnerships between the SOEs and other agencies in the region should be established. If the private sector is not interested to invest in a region, it is necessary to encourage the establishment of regional-owned enterprises (BUMD). 

The presence of the BUMD is necessary especially if there are no other ...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.