MP: Streamlining SOE Subsidiaries Enhances Competitiveness

Jakarta (ANTARA) - Christiany Eugenia Paruntu, a member of Commission VI of the Indonesian House of Representatives (DPR RI), believes that the steps taken by the government, alongside Danantara, to streamline and consolidate State-Owned Enterprise (SOE) subsidiaries are strategic policies that deserve support to strengthen the competitiveness of national companies.

In a written statement in Jakarta on Saturday, she noted that simplifying corporate structures is a vital part of the SOE transformation process, ensuring they become more adaptive to business challenges and capable of creating greater added value for the state.

She stated 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.

Consequently, she believes the consolidation efforts already implemented in several large SOEs—including the plantation, cement, and port sectors—should be appreciated as efforts to build leaner, healthier, and more productive organisations.

However, she emphasised that the real challenge does not end with the merger or integration 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,” said Christiany.

According to her, 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.

To this end, she assured that the House of Representatives is providing ample space 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 that every constructive input must be considered in refining policies to ensure that the SOE transformation proceeds in an inclusive and transparent manner, providing optimal benefits for all affected parties.