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SOEs to focus on six key sectors to drive national economy

Published on 15/07/2024 at 05:29 GMT+7 Reading time

The Ministry of State-Owned Enterprises (SOEs) is pushing for state-owned companies to focus on six key sectors − basic infrastructure development, mineral industry downstreaming, energy security and defense system modernization, tourism development, SME initiatives, and agricultural development − to boost domestic economy.

State-owned companies focusing on basic infrastructure development include PT Pelindo, PT Angkasa Pura, PT Jasamarga, PT KAI, and PT INKA. These companies are expected to reduce logistics costs by constructing seaports, airports, toll roads, and railways to enhance intercity connectivity.

For the mineral industry downstreaming sector, PT Mineral Industri Indonesia (MIND ID) holds shares in PT Inalum, PT Vale Indonesia, PT Aneka Tambang, and PT Freeport Indonesia. Companies in this sector aim to increase the value-added products of minerals.

The energy security sector includes PT PLN, PT Pertamina, and PT Len Industri or Defend ID. These companies focus on ensuring reliable electricity, reducing gas import volumes, promoting gas pipeline initiatives, transitioning energy, and developing defense equipment production capabilities.

Tourism development will be driven by Injourney, Garuda Indonesia, and Airnav Indonesia. Meanwhile, PT Bank Negara Indonesia, PT Bank Rakyat Indonesia, PT Pegadaian, PT Perusahaan Nasional Madani, PT Bank Syariah Indonesia, and PT Bank Mandiri will focus on supporting SMEs.

Lastly, the agricultural development sector will include PT Perkebunan Nusantara, Perum Perhutani, PT Pupuk Indonesia, Perum Bulog, and ID Food.

"Beyond these six sectors, there are still other SOEs to support the economy, but these six are the main focus," Deputy Minister of State-owned Enterprises, Kartika Wirjoatmodjo, told a discussion with media Editors in Jakarta over the weekend.

Kartika emphasized that SOEs are undergoing continuous transformation not only in business and finance but also in services. He cited the example of InJourney's transformation in the tourism sector.

"Many people do not believe that SOEs now have excellent hotels in Bali," he said.

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