The Daya Anagata Nusantara Investment Management Agency (BPI\nDanantara) is currently restructuring state-owned enterprises (BUMN) to\ncreate more efficient management. Chief Operating Officer Dony Oskaria\nhas confirmed that the streamlining process will not result in mass\nlayoffs. Despite reducing the number of BUMN entities from 1,077 to\napproximately 200-300 companies, all employees will be retained and\ntransferred to the consolidated firms. President Prabowo Subianto has\ndirected that the major transformation of BUMN must not harm the\nworkers.<\/p>\n
Oskaria explained that the streamlining process is targeted for\ncompletion this year to address widespread inefficiency and losses. He\nnoted that around 52% of the current 1,077 companies are operating at a\nloss, with accumulated losses reaching Rp20 trillion. Calculations\nshowed that the total annual labour cost for these companies is only\naround Rp2-3 trillion, while the potential efficiency savings are far\ngreater. By retaining all employees, Danantara still expects to save\nRp47 trillion.<\/p>\n
He asserted that no employees would be let go and that they would\nbecome part of the newly consolidated companies, as the restructuring is\nnot the fault of the workers. The consolidation is expected to generate\ndirect annual savings of up to Rp50 trillion by eliminating layered\ntransactions between parent companies, subsidiaries, and\nsub-subsidiaries, which have caused inefficiencies of around Rp30\ntrillion. An example cited was the merger of Pertamina Patra Niaga,\nKilang Pertamina Internasional, and Pertamina International Shipping,\nwhich cut internal transaction costs and accounting losses, saving\napproximately USD600-700 million. Similar inefficiencies were found\nwithin the Telkom Group, where fibre optic network projects passed\nthrough multiple corporate layers, incurring unnecessary costs. Oskaria\nconcluded that once the streamlining is complete and the number of\ncompanies is reduced to around 254, an immediate saving of Rp50 trillion\nwill be realised without waiting for improvements in profitability.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/danantara-ensures-no-layoffs-amid-state-owned-enterprise-streamlining-1781250715", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }