Forego mindset that SOEs must be salvaged: Minister Thohir


State-Owned Enterprises (SOEs) Minister Erick Thohir on Friday called to abandon the mindset that SOEs will definitely be saved by the government.

“The mindset that all SOEs will be saved by the government must be abandoned,” Thohir said as quoted from his official Twitter account @erickthohir here on Friday.

Thohir emphasized that all SOEs that stopped operating for a long time and did not contribute to society should be disbanded.

“From the onset, I have emphasized that non-operating SOEs, with no contribution to the community, must be disbanded,” he remarked.

Earlier, Thohir had announced the dismissal of three SOEs — Aceh Kraft Paper, PT IGLAS, and Nusantara Clothing Industry — which was carried out with the rights of the employees.

The effective dismissal of the three SOEs awaits the issuance of a government regulation in June 2022, he stated.

These three SOEs were dismissed since they had not operated since long. Aceh Kraft Paper had not operated since 2008, PT Iglas was non-operational since 2015, and the Nusantara Clothing Industry has not functioned since 2018.

Thohir will also review the performance of four SOEs that would also be disbanded.

The minister said he would disband SOEs that have not operated for a long time with no certainty for employees. This condition was not healthy for the business operator and the country as well.

In addition, if these SOEs were not capable of becoming a cluster or part of a consolidated business model, the ministry would likely disband that type of SOE.

In addition to Aceh Kraft Paper, Nusantara Clothing Industry, and PT IGLAS that were disbanded, four other SOEs under the Danareksa-PPA Holding — Merpati Nusantara Airlines, Istaka Karya, PT Kertas Leces, and PT Financing Armada Niaga Nasional (PANN) — will be dissolved by the ministry.

Source: Antara News