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Candidates lack plans for saving ailing SOEs: Analysts
The policy proposals of all presidential candidates are similar to those of President Joko “Jokowi” Widodo, with no clear strategy for solving financial problems at infrastructure SOEs, experts say.
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Workers of PT Waskita Sriwijaya, a subsidiary of state-owned construction firm Waskita Karya, pave a section of the trans-Sumatra toll road in Ogan Komering Ilir regency, South Sumatra, on April 3, 2023. (Antara/Nova Wahyudi)
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one of the presidential candidates’ campaign documents offer a concrete plan on how to address financial trouble at debt-laden state-owned enterprises (SOEs), analysts say.
According to the experts, all three pairs running for president and vice president appear to pursue an approach similar to that of President Joko "Jokowi" Widodo when it comes to managing SOEs, which is little consolation for heavily indebted infrastructure firms.
However, less aggressive infrastructure construction targets and more thorough feasibility studies before undertaking projects may offer remedies.
Yusuf Rendy Manilet, a researcher at the Center of Reform on Economics (CORE), said that, of the three presidential candidates, only Anies Baswedan has touched on the SOE debt problem in his campaign program.
"On a technical level, there is still a lot to be discussed, but at least, the candidate [Anies] is aware of the debt problems at infrastructure SOEs and thinks the issue needs to be raised as one of his programs," Yusuf told The Jakarta Post on Friday.
In their mission statement submitted as a mandatory document for registering their candidacy, Anies and his running mate Muhaimin Iskandar have a chapter called "Repositioning of SOEs’ Role" that proposes reviewing the debts and liabilities of all SOEs as well as continuing debt restructuring processes.
The plan also includes encouraging meritocracy in SOEs’ recruitment and leadership selection, supporting them to make them globally competitive as well as depoliticizing them to prevent conflicts of interest.
