Three state-owned enterprises (SOEs), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Pegadaian, and PT Permodalan Nasional Madani plans to synergize micro, small, and medium enterprises businesses - Photo: Special - Photo by President Office

JAKARTA (TheInsiderStories) – Three state-owned enterprises (SOEs), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Pegadaian, and PT Permodalan Nasional Madani (PNM) plans to synergize micro, small, and medium enterprises (MSMEs) businesses, said the minister last week. Recently, President Joko Widodo has ordered the formation of a holding on the MSME sector to Erick Thohir.

He have also told the coordinating minister for the economic affairs, Airlangga Hartarto, to create cluster under the umbrella of a group like holding. While, the CEO of BBRI Sunarso, said the corporate action requires a financial statement audit. As known, the lender is a business giant in MSMEs.

“We’ve had a meeting with BRI and we want to make sure that there will be a tremendous synergy with Pegadaian and PMN in June. We make sure there is no more overlapping policies and the target market is clear, if this happens, BRI will become an extraordinary bank,” said Thohir.

In September, the portion of Bank Rakyat Indonesia’ MSME loan portfolios reached 80.65 percent of the total credit in September or Rp935.35 trillion (US$66.34 billion). With the direction, the bank is eyeing the portion of MSME financing rise to 85 percent.

Since the beginning of this year, Thohir has announced to create a number of clusters to streamline the number of the companies under his ministry. The reason, from 142 SOEs, only 15 companies contributed to the government revenues.

“We have to reduce this amount, one option is forming a cluster and other options liquidation and mergers. Later the maximum number of clusters is 15,” he told reporters on Jan. 28.

Therefore, he said, the ministry wants to cut the number of SOEs, their subsidiaries and affiliates, which is estimated around 800 companies. To implement the plans, now, the ministry prepared five blueprints to balance the economic and social values ​​can be well exposed.

Later on, he continued, there will be a mapping. which is heavy in cooperation, companies with large assets but large public services such as Bank Rakyat Indonesia and power producer PT Perusahaan Listrik Negara. Then large public services such as food supplier company Perum Bulog, and unclear companies.

“Companies that are not clear we will be merged or liquidated. I’m waiting for the president’ and minister’ approval on this plan,” he asserted.

Thohir gave an example, in June, the ministry has finalized hospital cluster under the SOEs. The ministry also considered to creates mining cluster, transportation cluster, hospitality cluster, manufacturing cluster, and others. The ministry now manage Rp8,200 trillion of assets from 140 SOEs.

US$1: Rp14,100

Written by Editorial Staff, Email: theinsiderstories@gmail.com