House of Representatives Member Believes SOE Streamlining Enhances Efficiency and National Competitiveness

A member of Commission VI of the Indonesian House of Representatives (DPR RI), Christiany Eugenia Paruntu, believes that the government’s steps, alongside Danantara, to streamline and consolidate SOE subsidiaries are strategic policies that deserve support. Such measures are intended to strengthen the competitiveness of state companies, increase operational efficiency, and optimise the contribution of SOEs to the national economy.

She noted that simplifying corporate structures is a vital part of the SOE transformation process, allowing them to become more adaptive to business challenges and capable of creating greater added value for the state. She explained that many SOEs currently possess highly complex group structures with a vast number of subsidiaries.

“This condition has the potential to cause overlapping functions, increase operational costs, and reduce the effectiveness of business decision-making,” she stated in a briefing on Saturday, 6 June 2026.

Consequently, the consolidation efforts already undertaken in several large SOEs—including the plantation, cement, and port sectors—should be appreciated as efforts to build leaner, healthier, and more productive organisations. She agreed with observers that reducing the number of business entities can yield positive impacts on cost efficiency and the optimisation of corporate performance.

However, Christiany emphasised that the true challenge does not end with the merger process itself. “The far more important stage is ensuring that post-merger integration runs effectively, ranging from the harmonisation of work cultures and the alignment of business processes to the strengthening of corporate governance and the improvement of human resource quality,” she continued.

She added that the success of restructuring should not only be measured by the reduction in the number of subsidiaries but also by increased productivity, profitability, and the companies’ ability to create sustainable economic value. As a member of the Golkar Party Faction, Christiany stated that she is open to 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 believes that every constructive contribution must be considered to refine policies, ensuring that the SOE transformation is inclusive, transparent, and provides optimal benefits for all affected parties.