Some steps toward sectorial consolidation have already been taken. For example, MIND ID oversees key mining companies such as PT Aneka Tambang and PT Freeport Indonesia, creating a unified structure that fosters coordination, resource sharing and strategic planning.

The energy sector is also moving in this direction, with oil and gas company PT Pertamina and electricity company PT PLN working more closely under an integrated framework. Grouping companies within the same industry under one roof can boost decision-making agility and address sector-specific challenges more effectively.

This sectorial alignment makes sense because companies operating in the same field often face similar regulatory landscapes and market dynamics. An energy holding company grouping Pertamina and PLN for instance, could streamline efforts to expand renewable energy. The financial sector would benefit from a similar approach, with major players like Bank Mandiri, BRI and BNI sharpening their focus on growth areas such as fintech and digital banking through a dedicated financial holding company.

Advocates of a centralized super holding company argue that the approach has proven effective in places like Singapore and Malaysia. Temasek, for example, has extended its reach globally, making strategic investments that have expanded its portfolio well beyond Singapore’s borders.

For us, following a similar model could open doors to global markets, helping our SOEs compete by accessing international capital and technology. A single super holding company could also optimize resource allocation, channeling investments to where they are most needed.

However, our circumstances present unique challenges that differentiate us from smaller economies like Singapore. The SOE landscape here is vast and complex, with more than 100 companies spread across diverse sectors.