DPR Urges Government to Accelerate Streamlining of State-Owned Enterprises
Member of Commission VI of the Indonesian House of Representatives (DPR RI), Firnando Ganinduto, believes that the streamlining policy for the structure of State-Owned Enterprises (SOEs) must be accelerated immediately and carried out with precision. According to him, SOE restructuring is necessary to create a leaner, more effective, and more productive corporate structure, while ensuring that no subsidiary or sub-subsidiary remains whose existence lacks a clear function.
He emphasised that SOE efficiency is not merely a corporate matter, but concerns the use of resources that ultimately constitute public money.
Firnando said that the streamlining policy is part of the government’s direction through Danantara and is not aimed solely at one particular company. He explained that the streamlining agenda has been part of the discussions in Danantara’s RKAP since the beginning of the year. According to him, all SOEs need to undertake restructuring so that corporate structures are not overly bloated and unnecessary chains of subsidiaries and sub-subsidiaries can be minimised.
“Commission VI in principle supports the streamlining of SOEs. There must be no subsidiary or sub-subsidiary with an unclear function that continues to consume company resources. We must remember that SOE money is ultimately public money. Therefore, there must be no waste that does not benefit society,” said Firnando, as quoted from a press release received on Wednesday (12/8).
He assessed that the ongoing streamlining process needs to be carried out more quickly, but still based on thorough study so that the resulting efficiency truly has an impact on company productivity and performance.
Firnando stressed that streamlining must not be interpreted merely as reducing the number of companies or dissolving SOE entities. According to him, restructuring must be carried out with precision while maintaining the core function of each company.
He added that a simpler structure must be able to accelerate decision-making, reduce layers of bureaucracy, improve efficiency, and make SOEs more adaptive to economic changes and public needs. Therefore, the government and Danantara need to ensure that every restructuring process has a clear basis, measurable objectives, and does not create new problems.
Specifically regarding Pertamina, Firnando assessed that streamlining should be directed at strengthening the company’s focus on its core business in the energy and mineral resources sector. He cited a number of activities outside the core business, such as hospitals, aircraft, and other businesses, which can be restructured or separated so as not to disrupt Pertamina’s primary focus.
According to him, this step does not mean diminishing Pertamina’s role, but rather ensuring that the company can optimise its resources to carry out its strategic mandate while strengthening national energy security.
As the government’s working partner in the SOE sector, Firnando affirmed that Commission VI of the DPR RI will continue to oversee the implementation of streamlining so that the policy truly produces SOEs that are healthy, efficient, professional, and provide optimal benefits to the state.
“Our target is not merely to reduce the number of SOE entities, but to build a structure that is truly effective and productive. Do not waste public money maintaining structures that no longer have a clear function. Streamlining must be accelerated, carried out with precision, and maintain core business so that SOEs become stronger and able to make a greater contribution to the economy and society,” Firnando explained.