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SOEs may need to cut back on business trips, commissioners
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State-Owned Enterprises Minister Erick Thohir (center) is pictured in an undated photograph. (JP/Seto Wardhana)
S
tate-Owned Enterprises (SOEs) Minister Erick Thohir says his office is exploring further budget cuts for SOEs by limiting business trips and reducing the number of executives.
Erick said the idea would be further discussed with Rosan Roeslani, the CEO of Daya Anagata Nusantara (Danantara), Indonesia’s sovereign wealth fund, which manages SOEs.
“Tonight, I will have a discussion with Bapak Rosan on whether it’s possible to make the operations of SOEs more efficient. This needs discussing, be it [about cutting] business trips or the number of commissioners, we’ll talk about this,” said Erick in a press conference on Monday, as quoted by Kumparan.
He said the task of making operations more efficient across SOEs, which includes the option of reducing the amount of commissioners, was a direct order from President Prabowo Subianto. Erick cited “reducing the number of commissioners at state-owned banks” as an example.
The minister said the move would not hurt the companies’ performance.
“It’s just budget shifting. Give the government a chance to shift budgets, and we’d definitely keep reviewing it,” said Erick.
Prabowo explained in February that he was eyeing savings of more than Rp 750 trillion (US$45.5 billion) through multiple phases of fiscal consolidation this year, the first of which has been concluded by identifying over Rp 300 trillion that could be saved up in the state's discretionary fund set aside in the 2025 state budget for unforeseen events.
