State-owned enterprises (SOEs) are preparing billion-dollar projects to get fresh fund through Indonesia Investment Authority - Photo: Special

Indonesia’ State Own Enterprises (SOEs) ministry targets that some holding companies (holdco) establishment will be finished in March (1Q) of 2019, said the minister Rini Soemarno yesterday (01/16). The unfinished-holdings are infrastructure, insurance, housing, industrial estate, port, defense, pharmacy, cement, and financial sector.

Her’ deputy Gatot Trihargo adding, that insurance holding will be established in the first quarter. The insurance holding acceleration is expected to solve PT Asuransi Jiwasraya’s policy default issue, by restructuring its business.

Meanwhile, financial holding that consists of PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Mandiri Tbk (IDX: BMRI), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Tabungan Negara Tbk (IDX: BBTN), PT Pegadaian, PT Permodalan Nasional Madani, and PT Bahana Pembinaan Usaha Indonesia, to follow in the second quarter.

Trihargo revealed, sharia banks will follow later. Those have their own road map and still under discussion for the holding establishment. The sharia banks holding will be led by investment management financial services PT Danareksa.

The holding establishment aims to ease command and monitoring. It will also be more effective in terms of company’s operation. So state-owned enterprises can act not only as bureaucracy, but also as corporation.

No explanation on the other holdco. But recently the ministry official has mentioned toll road operator PT Hutama Karya will lead infrastructure companies and housing developer PT Perumnas in housing sector. But no cleared information the leader of industrial estate, port, defense, pharmacy, cement, and financial sector.

Soemarno has been assigned a special task by President Joko Widodo to merge SOEs under holdco in six sectors, namely, mining, oil & gas, infrastructure and construction, housing, financial services, also food commodities.

So far, the ministry has succeed established two holding companies in mining lead by PT Indonesia Asahan Aluminium and Oil & gas holding under energy producer PT Pertamina. The complicated rule and administration become the handicap on the SOEs moves to create new holdco.

The holding companies is very important to strengthen the companies, as well as making them more efficient and transparent. Thus, the reasoning goes, SOEs will gain the capacity to compete not only in the domestic market, but also against multinational corporations on a global scale.

By Linda Silaen, Email: