Monday, 06 April 2020 14:24

Thohir formulates steps for SOEs to safeguard economy against COVID-19

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State-Owned Enterprises (SOEs) Minister Erick Thohir remains committed to safeguarding the resilience of SOEs in facing the economic impact of the COVID-19 pandemic.

Thohir did not dismiss the ramifications of the COVID-19 crisis, as it would also affect the performance of the state-owned companies.

"We also need to ensure how to prioritize workers, combine other businesses, prioritize efficiency, and strengthen cash flow," Thohir noted in a statement in Jakarta on Sunday (Apr 5).

The minister had begun finalizing the mapping of business portfolios for all SOEs and its subsidiary businesses.

As an initial step, Thohir streamlined 51 subsidiary businesses from Pertamina, Telkom, and Garuda Indonesia. The minister will continue downsizing while still being heedful of the employees working in it.

Related news: Minister urges SOEs, private companies to compete to advance Indonesia

The Ministry of BUMN has conducted mapping of BUMNs based on business portfolios. Mapping is carried out after taking into account parameters of the economic value of public services.

Thohir remarked that the mapping will define the steps and strategies for the Ministry of SOEs to take a decision on maintaining, transforming, consolidating, or divesting or releasing the company.

The minister is upbeat about the mapping and several efficiency measures undertaken by SOEs helping to safeguard the Indonesian economy against the impact of the COVID-19 pandemic.

The SOE minister assessed that several countries, including Indonesia, are facing major challenges in the economic sector arising from the COVID-19 pandemic.

Thohir stressed that the government had not stayed silent and made persistent efforts to protect the nation's economy.

The minister pointed to President Joko Widodo’s initiative of issuing several rules in safeguarding the national economy amid the COVID-19 pandemic.

Bank Indonesia Governor Perry Warjiyo stressed he would optimize efforts to ensure stability of the rupiah exchange rate against the US dollar, and such steps have drawn praises from the IMF managing director.

Read 307 times Last modified on Monday, 06 April 2020 17:09