Indonesia seeks stronger SOE role in national development efforts
“We direct SOEs not only to generate economic values but also to deliver concrete benefits to social welfare and environmental sustainability,” Head of the SOE Regulatory Agency (BP BUMN) Dony Oskaria said in a statement received in Jakarta on Thursday.
He reaffirmed this determination during a BP BUMN summit attended by senior officials, held to align strategies to empower Indonesian SOEs as key instruments of national growth and development.
Oskaria, who also serves as chief operating officer of Indonesia’s sovereign wealth fund Danantara, emphasized that SOEs are expected to act as enablers for talent development, innovation, and improved governance marked by professionalism and accountability.
He added that SOEs must become more adaptive, enhance competitiveness, and respond more effectively to public needs and global dynamics.
BP BUMN, he continued, is committed to transforming state-run firms beyond purely commercial entities, positioning them as sustainable national assets that genuinely serve broader public interests.
He further noted that stronger institutional foundations are needed for SOEs to optimize their role as catalysts for economic growth and social welfare.
During the inauguration of echelon I and echelon II officials in Jakarta on February 24, Oskaria revealed that BP BUMN was preparing a major agenda to overhaul Indonesia’s SOE landscape, including the option of reducing the number of entities.
He explained that the plan is to cut the number of SOEs from 1,000 to around 200–300 through mergers, divestments, liquidations, and restructuring, noting that the reform would be the largest ever carried out in Indonesia.
Oskaria also called on all SOE personnel to uphold integrity and professionalism to ensure transparent, accountable, and sustainable governance.
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Translator: Putu Indah, Tegar Nurfitra