You can’t make a business plan!
Jakarta, CNBC Indonesia – Minister of State-Owned Enterprises (BUMN) Erick Thohir is disappointed with the number of BUMNs that do not submit business plans. Of the 142 BUMNs, Erick said only 10 made deposits.
“Can’t you just ask for a business plan? Those who are diligent in banking, PLN and Pertamina have also made deposits,” he said yesterday (21/2/2020).
Erick said that the 142 companies would later be divided into 15 different sub-holdings based on their respective business groups. This includes one subholding for companies that are considered to be in the dead-weight category.
He said that his two deputy ministers would each hold 7 subholdings to facilitate supervision of the 142 companies in BUMN.
“I want it to be finished, yes, each Deputy Minister holds 7 or more sub-holdings or if possible 7. Then there are dead-weight sub-holdings, 15 but they haven’t been completed yet. It’s still being mapped. Because it’s impossible for each Deputy Minister, “including me overseeing 142 companies, not to mention hundreds of BUMN grandchildren,” said Erick.
This division of company groups is also the ministry’s effort to reduce the number of state-owned companies that are deemed no longer profitable or dead-weight. Several criteria for companies in this category include no longer having economical business prospects and declining financial performance, aka making a loss.
For companies in this category, said Erick, there will be two decisions whether the company will be liquidated or merged with another similar company.
He said that the merger or liquidation process is expected to be completed within three months of the decision by the government. Currently the BUMN ministry is still waiting for approval from the President and the Ministry of Finance.
Currently, Erick already holds 10 companies, both state-owned companies and their subsidiaries, which are ready to be liquidated. Five of them are subsidiaries of PT Garuda Indonesia Tbk. (GIAA), including one of them is PT Garuda Tauberes Indonesia.
“I don’t want to talk in detail before it can be used as a statement. But the subsidiaries are the directors and commissioners who can see first which ones are inefficient and not part of the strategy. Garuda just prepared them, they saw that there were 5 that were not needed. One of them is Tauberes ,” he explained.
[Gambas:Video CNBC]
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(dru)