{
    "success": true,
    "data": {
        "id": 1757295,
        "msgid": "ui-economist-says-streamlining-of-subsidiaries-will-improve-bumn-focus-1779542192",
        "date": "2026-05-22 14:12:12",
        "title": "UI Economist Says Streamlining of Subsidiaries Will Improve BUMN Focus",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Business",
        "summary": "An economist from the University of Indonesia argues that streamlining BUMN subsidiaries could lift efficiency and unlock greater synergies across state\u2011owned enterprises. He notes the main hurdle is post\u2011merger integration and urges a strong Project Management Office to steer transformation. The article also reports planned reductions in PTPN, SIG, and Pelindo subsidiaries as part of broader consolidation.",
        "content": "<p>Jakarta \u2013 Toto Pranoto, Managing Partner of the BUMN Research Group\nat LM FEB UI, University of Indonesia (UI), says that the streamlining\nof state\u2011owned subsidiary companies can increase the efficiency and\neffectiveness of the state\u2011owned enterprises. He notes that the aim of\nconsolidating subsidiaries is for BUMN to focus on their core business.\n\u2018The performance of these entities is expected to improve as this\nprocess can enhance efficiency and greater potential for BUMN\nsynergies,\u2019 Toto said, in Jakarta on Friday.<\/p>\n<p>He added that the reductions of 47 subsidiaries of PT Perkebunan\nNusantara (PTPN), 28 subsidiaries of PT Semen Indonesia (Persero) Tbk or\nSIG, and up to 17 subsidiaries of PT Pelabuhan Indonesia (Pelindo) could\nlift the pace of the companies\u2019 performance.<\/p>\n<p>However, Toto cautioned that the main challenge in BUMN consolidation\nlies in the post\u2011merger implementation process. \u2018There is a need for\nhard work in execution because value creation often fails to materialise\nin BUMN due to failures in post\u2011merger integration implementation,\u2019 he\nsaid.<\/p>\n<p>Therefore, he argued that a strong Project Management Office (PMO) is\nrequired to guard the transformation and integration of the\ncompanies.<\/p>\n<p>According to Toto, reducing the number of BUMN should not be solely\nabout numbers; it must create greater added value for the BUMN moving\nforward. \u2018In essence, reducing the number of BUMN is not just about the\nfigures, but the more fundamental aim must be to cultivate greater value\nfor the BUMN,\u2019 he said.<\/p>\n<p>Earlier, Danantara (Badan Pengelola Investasi Daya Anagata Nusantara)\ntogether with BP BUMN announced on 19 May 2026 that they had reorganised\naround 180 BUMN as part of the transformation and consolidation of\nstate\u2011owned enterprises.<\/p>\n<p>Several BUMN have also begun restructuring their business lines by\nreducing the number of subsidiaries as part of operational efficiency\nimprovements and strengthening focus on business lines.<\/p>\n<p>PTPN, for instance, plans to trim dozens of subsidiaries to reinforce\nits focus on the plantation business and support operational\nintegration.<\/p>\n<p>Meanwhile, SIG is simplifying its subsidiary structure from around 40\ncompanies to 12 entities to boost efficiency, speed up business\ndecision\u2011making, and strengthen the group\u2019s performance.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/ui-economist-says-streamlining-of-subsidiaries-will-improve-bumn-focus-1779542192",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}