Economist: Erick Thohir's transformation to make BUMN more efficient

Minister of State-Owned Enterprises (SOEs) of Indonesia Eriick Thohir.
Minister of State-Owned Enterprises (SOEs) of Indonesia Eriick Thohir.

JAKARTA -- Executive Director of the Center of Reform on Economics (CORE) Mohammad Faisal said that State-Owned Enterprises (BUMN) under the leadership of Erick Thohir have now become more professional and efficient.

Faisal assesses that the transformation steps pushed by Erick Thohir are very crucial for increasing the competitiveness of BUMN.

"Erick Thohir is pushing SOEs to be more efficient, improve their management, then they are more competitive so they can compete at home and abroad," said Faisal in Jakarta, Saturday (13/1/2024).

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Faisal said that Erick's decision in the transformation of BUMN was very important in establishing a meritocracy system. With this system, the appointment of directors and commissioners relies on competency, no longer focused on non-technical aspects such as closeness or reciprocity.

"The large salaries and allowances of directors and commissioners must be accompanied by the performance of BUMN, from a financial perspective and the function of BUMN as a development agent," said Faisal.

Faisal conveyed that Erick Thohir's steps to restructure and improve the quality of human resources were positive steps in encouraging BUMN efficiency.

Not only that, a number of holding company formations to strengthen the integrated BUMN ecosystem also have a positive impact on the performance and increase the competitiveness of BUMN.

"Restructuring from an institutional perspective and forming a holding is good, it just needs to be adjusted to the characteristics of each BUMN," said Faisal.

Erick Thohir also strengthened transparency and honesty in transforming BUMN by opening BUMN corruption cases. These corruption cases are then resolved in court.

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