NEXT Indonesia Center: Danantara Could Utilise SOE Talent Pool

A state-owned enterprise (SOE) observer and Director of NEXT Indonesia Center, Herry Gunawan, has stated that Danantara could utilise the talent pool programme already running within SOEs to find candidates capable of leading state-owned enterprises and their subsidiaries. “Danantara should prioritise them (talent in the talent pool) as candidates to lead SOEs and their subsidiaries,” Herry said when contacted by ANTARA from Jakarta on Wednesday. Herry assessed that the talent pool programme within SOEs has produced human resources with the talent to become SOE leaders. He therefore proposed that Danantara prioritise them to lead SOEs and their subsidiaries amid the ongoing restructuring of state-owned firms. “They are trained and experienced human resources, rather than seeking new ones from outside,” Herry said. He noted that business consolidation will lead to a surplus of human resources, particularly at the middle and lower levels. Therefore, in addition to asking Danantara to utilise the existing talent pool, Herry also proposed that Danantara implement a moratorium or hiring freeze on recruitment, especially for middle and lower-level positions. “This is so that SOE performance is more operationally efficient,” Herry said. The Danantara Investment Management Agency has assured that there will be no layoffs of employees during the ongoing streamlining of state-owned enterprises. Danantara Chief Operating Officer Dony Oskaria stated that all employees will be retained and become part of the consolidated companies as part of efforts to restructure SOEs to improve corporate efficiency and performance. He also said Danantara is currently streamlining the number of SOE entities from 1,077 companies to around 200–300 companies, targeted for completion by 2026. According to Dony, President Prabowo Subianto has directed that the SOE transformation should not harm workers. “The President certainly does not want any layoffs,” he said.