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Jakarta Post

Super holding company to replace function of SOEs Ministry

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Mon, April 15, 2019   /   05:20 pm
Super holding company to replace function of SOEs Ministry State-Owned Enterprises (SOEs) Minister Rini Soemarno (JP/Tirta Utama Umbas)

State-Owned Enterprises (SOEs) Minister Rini Soemarno has said that a super state-owned holding company may replace the functions of the SOEs Ministry.

She said a super holding company would be directly controlled by the president, just like Temasek in Singapore and Khazanah in Malaysia, which were controlled by those countries' respective prime ministers.

“The super holding company will ensure the professional control of state-owned enterprises, “ Rini told the press on Monday in Jakarta.

President Joko “Jokowi” Widodo revealed his intention to establish a super state-owned holding company during the final presidential candidate debate on Saturday. He said the holding company would become the ultimate parent company of state-owned holding companies.

Rini, however, said such a super holding company needed approval from the House of Representatives.

The government has established three holding companies – state-owned oil and gas holding company Pertamina, state-owned holding plantation company PT Perkebunan Nusantara (PTPN III) and state-owned mining holding company PT Indonesia Asahan Aluminium (Inalum).

The state-owned oil and gas holding company was an integration of Pertamina and state-owned gas distributor PT Perusahaan gas Negara (PGN) and their respective subsidiaries; while the state-owned mining holding company was the integration of several companies, including Inalum, coal miner PT Bukit Asam, tin miner PT Timah and diversified mining company PT Aneka Tambang (Antam); while the planting holding company was also supported by all state-owned plantation companies.

More holdings companies may be established, including a state-owned aviation holding company and state-owned construction holding company. (bbn)