Jokowi just brought down the gavel to form six state-owned holding companies. The companies that have been chosen are not those who always have the best performance, the largest market, or the largest asset. The chosen ones are those fully controlled by the government.
How are their profiles compared to the other companies that have been listed in the Indonesian Stock Exchange?
This article will particularly discuss Hutama Karya, Danareksa, Perumnas and Inalum. As for Pertamina and Perum Bulog, the reason that they are being selected is obvious—it is because they drive their sectors and have been building their own strategic positions.
Future management needs special attention in the occasion that full control has been given to the chosen parent companies. Some things that may appear are as below.
First. A company that has been chosen to be a parent company could be a non-operational company. It means that the entire business could be given to its subsidiaries, which will bring an optimal performance.
Second. If a parent company is still an operational company, the strategy and operational standard for each company will become an issue, especially because of the operational performance that is lower than its subsidiaries. The parent company, better yet the Minister of State-owned Enterprise, needs to find a solution to this matter so that the performance of each company will not be weakened, but improved with the best standard implementation.
Third. Historically, all these companies were competitors against each other and were united by government. This competitive culture might become their strength or weakness, depending on how they manage. The competition is getting intense since the parent company is selected by the weak, and will interfere in its dynamic management.
Otherwise, if it can manage well, then the state-owned holding concept will make a new conglomerate, a government conglomerate that can serve the government’s interests in terms of both business and public services.
The next part of this article will discuss about the companies that will be the parent company and the subsidiaries that will be placed beneath it, especially in the financial sector, highways, housing, and mining.
[…] that supposed to potentially manage a large asset that will be accepted in Indonesia. No wonder the government wants to gather up all its resources in the financial sector and manage it […]