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Jokowi backpedals on state firm ‘superholding’
“A superholding may not be the best option. Look at the performance of Temasek and Khazanah. They’re also having problems in the latest economic conditions. We will try to look out for a new mechanism and study the developments,” Jokowi said on Wednesday.
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The office of the State-Owned Enterprises (SOEs) Ministry is seen in this file picture. (Kontan/Ahmad Fauzie)
O
nce touted as a way for Indonesian state firms to go global, President Joko “Jokowi” Widodo has signaled he’s backpedaling on a plan to set up a superholding company of state firms, the local version of Singapore’s Temasek or Malaysia’s Khazanah.
Jokowi told a group of chief editors that the government was currently assessing the best business model for state firms to become more efficient and profitable, as some have struggled to keep afloat as they need to remain commercially viable and profitable while providing a public service at the same time.
“A superholding may not be the best option. Look at the performance of Temasek and Khazanah. They’re also having problems in the latest economic conditions. We will try to look out for a new mechanism and study the developments,” Jokowi said on Wednesday.
The President taking a backseat on superholding plans is expected to be a major blow for State-Owned Enterprises (SOEs) Minister Rini Soemarno, the main campaigner for and the brain behind the superholding idea, and who many have speculated will not be reappointed to Jokowi’s new Cabinet.
Rini, who has frequently been the target of criticism by lawmakers, politicians, state institutions and observers, has been attacked for her decisions in managing state firms that are expected to help advance Indonesia's economic and human capital development.
The latest of many such incidents saw Rini being accused of disobedience toward the President’s directive temporarily prohibiting ministries from issuing strategic policies, including management shakeups of state firms, as the minister was reportedly planning to call for extraordinary shareholders meetings for at publicly listed state giants.
She is also currently being investigated by the Business Competition Supervisory Commission (KPPU) for her decision to allow several directors hold double roles in different state firms.
