DPR Commission VI Believes Consolidation of SOE Subsidiaries Can Boost Efficiency
Christiany Eugenia Paruntu, a member of Commission VI of the Indonesian House of Representatives (DPR RI), believes that the downsizing and consolidation of SOE subsidiaries could serve as a strategic step to increase operational efficiency and strengthen the competitiveness of state-owned enterprises. This policy is also seen as having the potential to optimise the contribution of SOEs to the national economy.
Christiany stated that simplifying corporate structures is a vital part of the SOE transformation process to ensure they are more adaptive to business challenges. According to her, several SOEs currently possess complex group structures with numerous subsidiaries, which potentially leads to overlapping functions and increased operational costs.
“Therefore, the consolidation steps already undertaken in several large SOEs, including the plantation, cement, and port sectors, deserve appreciation as an effort to build leaner, healthier, and more productive organisations. Reducing the number of business entities can have a positive impact on cost efficiency and the optimisation of company performance,” Christiany said in her statement on Sunday (7/6/2026).
Nevertheless, Christiany noted that the success of restructuring is not determined solely by the reduction in the number of subsidiaries, but also by the effectiveness of post-merger integration. She emphasised that increased productivity, profitability, and the ability of companies to create sustainable economic value are the primary indicators of a successful transformation.
“We are opening as much space as possible for all stakeholders—including SOE entities, trade unions, business actors, academics, and the public—to provide input, aspirations, and evaluations regarding the ongoing restructuring process,” she added.
The Golkar Party politician stated that feedback from various parties must serve as material for evaluation to ensure the SOE transformation is inclusive and transparent. This ensures that the benefits of restructuring can be felt more widely by all related parties.
Christiany reaffirmed that Commission VI of the DPR RI will continue to oversee the SOE transformation and restructuring process alongside the Ministry of SOEs and Danantara. “Should any feedback or issues arise in the field, we are ready to follow up and discuss them with the Ministry of SOEs and Danantara to find the best solutions,” said Christiany.
She concluded that the primary goal of the SOE transformation is to create stronger, more efficient, and more competitive state enterprises capable of supporting national economic growth, thereby acting as a driver for the economy and providing tangible benefits to the Indonesian people.