State-Owned Enterprise PT INTI Faces Potential Closure

Dony Oskaria, Chief Operating Officer (COO) of the Investment Management Agency (BPI) Daya Anagata Nusantara (Danantara), has signalled that PT Industri Telekomunikasi Indonesia (INTI) potentially faces closure. Dony shared this during an explanation regarding the numerous state-owned enterprises (BUMN) experiencing difficulties because they are currently managed in isolation.

“We may have known many famous BUMNs in the past; for instance, in Bandung, there is PT INTI which is very well-known, but it is now facing problems that might lead us to close it as well,” Dony explained during the Jogja Financial Festival on Saturday (23/05/2020).

Previously, the Ministry of SOEs only held management authority rather than direct ownership of these state-owned companies. Consequently, when a BUMN encountered financial distress, other companies were unable to provide assistance. “However, because there was no mechanism to allow one BUMN to assist another, it has made improvements difficult to implement,” he noted.

Dony explained that the establishment of Danantara is expected to serve as a solution, as all SOEs are now being consolidated into a single holding company, making the corporate recovery process more manageable. Danantara functions as a sovereign wealth fund based on state-owned enterprises.

Under this model, major companies such as Bank Mandiri, BRI, Krakatau Steel, Garuda, Pertamina, and PLN are now part of a single holding structure, allowing for easier integrated management. “By unifying and consolidating them, it becomes easier for us to manage our BUMNs. Now, Bank Mandiri, Bank BRI, Krakatau Steel, Garuda, Pertamina, and PLN are all part of one holding company,” Dony concluded.