SOE holding to strengthen global competition: Minister

Yogyakarta (ANTARA News) – Finance Minister Sri Mulyani Indrawati said that the establishment of State-Owned Enterprises (SOE) holding is expected to be a solution for a business entity to win global competition.

“Hopefully, the holding will make the state enterprises work more efficiently to strengthen its competitiveness in global market,” Sri Mulyani said here on Thursday.

According to her, the state-owned holding is aimed to build state enterprises competitiveness in facing the global market. In addition, the formation of holding companies will also increase value in terms of capital structure, assets, as well as business efficiency.

“After all, the holding will boost the SOEs to become the real players in the world in the era of free market,” Sri Mulyani said.

According to her, the SOEs that currently have fragmentary businesses make the capital structure uncompetitive. As a result, the development of SOEs relies heavily on capital injections from the government through the state budget.

Therefore, the SOEs synergy is a solution to capital challenges, as it can be managed in a more professional and independent organization.

Nevertheless, the minister said that the formation of holding is not just to unite the balance sheet but to combine different business activities in corporate governance and social, economic, and political provisions.

“The acquired companies will still remain the same, but they would be managed in the form of holding,” she pointed out.

She added that the holding should be able to make the state enterprises more professional and transparent. Companies that will be SOE parents have to be healthy.

Therefore, the Internal Control Unit (SPI) must be active in ensuring that the SOEs have optimal performances, Sri Mulyani added.(*)