Indonesian Political, Business & Finance News

Streamlining of Transport SOEs Urged to Improve Public Services

| | Source: REPUBLIKA Translated from Indonesian | Infrastructure
Streamlining of Transport SOEs Urged to Improve Public Services
Image: REPUBLIKA

The streamlining of state-owned transport enterprises must not stop at simplifying structures and business processes. The transformation should result in increasingly reliable public services while promoting more efficient logistics costs. Transport SOEs play a crucial role in managing national connectivity, from ports and airports to toll roads. Therefore, efficiency at the corporate level needs to be translated into tangible benefits for the public and the business world, particularly through improved service quality and the smooth mobility of people and goods. Chairman of the Indonesian Consumer Empowerment Forum (FKBI), Tulus Abadi, stated that the streamlining strategy for transport SOEs is a relevant step as it aligns with the primary function of SOEs as public service providers. According to him, corporate efficiency can go hand in hand with improved service quality if supported by strong governance and the right transformation strategy. “Streamlining in public service SOEs is a necessity, because one of the main functions of SOEs is public services. With this pattern, reliable public services and high levels of public satisfaction will be created. However, this is also influenced by the business performance of the SOE, which shows continuously improving corporate performance,” Tulus said in a press release in Jakarta on Sunday. According to Tulus, the success of SOE streamlining is reflected in healthy financial performance and increased benefits for the community. Success indicators can be seen from increased user satisfaction, faster complaint services, and strengthened financial performance that impacts contributions to the state. Tulus also assessed that the consolidation of SOEs in strategic sectors is a policy that can be implemented as long as it considers the public interest. According to him, for sectors concerning the livelihood of many people, the existence of large-scale SOEs can be a state instrument in maintaining tariff affordability, service availability, and infrastructure reliability. However, he stressed the importance of ensuring that the efficiency achieved does not increase the burden on the public. “The aspect that must be mitigated is the production cost efficiency of the SOE, so that the public does not have to bear costs that should not be charged. In the medium term, this transformation should be able to encourage a reduction in logistics costs which then impacts the public as end users,” said Tulus. Meanwhile, Chief Operating Officer of Danantara, Dony Oskaria, emphasised that Danantara’s presence marks a momentum for a paradigm shift in SOE management. “SOEs are encouraged to become more competitive through innovation, efficiency, and improved service quality, not merely relying on their status as state-owned companies,” Dony said. Danantara is currently undertaking an SOE transformation, including within the Public Services, Transport & Connectivity cluster. These include InJourney Airports (PT Angkasa Pura Indonesia), Pelindo (PT Pelabuhan Indonesia), PT Jasa Marga Tbk, and several other related SOEs. Through Danantara Indonesia’s centralised coordination, the three SOEs are strengthening synergy through structural simplification, governance strengthening, business and asset optimisation, acceleration of digitalisation, and human resource strengthening. In the port sector, Pelindo is carrying out corporate streamlining by reducing function duplication, standardising services, and strengthening operational integration. Meanwhile, InJourney Airports is strengthening efficiency through more integrated financing management, including restructuring that contributes to an annual interest expense reduction of around 10 percent. In the toll road sector, Jasa Marga is strengthening value-creation-based transformation through digitalisation and service quality improvement. Initiatives such as the Jasamarga Tollroad Command Center with support from more than 3,500 real-time CCTV cameras and the Travoy application, which has reached more than 1.3 million downloads, are examples of how technology connects operational efficiency with user experience. The transformation of these three SOEs is taking place ahead of the 81st Independence Day celebrations on 17 August. This is part of strengthening national power synergised with Danantara for a more sovereign, just, and prosperous Indonesia.

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