Transformation of SOE Ministry Annual Report 2020 slide image

Transformation of SOE Ministry Annual Report 2020

MINISTRY OF STATE-OWNED ENTERPRISES ANNUAL REPORT 2020 02 TRANSFORMATION OF SOE MINISTRY THE TRANSFORMATION OF SOE MINISTRY 證 $ SOEs are essential to the national economy. Together with other entities, private firms, MSMEs, and cooperatives, SOES embody economic democracy. SOES are both value creators and agents of development, the two roles that significantly affect the national economic growth. Given their roles, SOES focus not only on the bottom lines and on generating state revenues. SOES are also the pioneers in various strategic development projects and providers of essential public services for the Indonesian people, as mandated by Law No. 19 of 2003 on SOES. To start the transformation journey, the SOE Ministry has developed an SOE roadmap and identified five priorities in 2020. The activities to implement the transformation include re-organization and recruitment of leaders from among professionals hence the Ministry can guide SOES as corporations instead of bureaucrats. Other activities include creating clusters and holding companies to optimize portfolio management and development, and to eventually foster the world-class SOES. The Dual Role of SOES in Indonesia's Development Value Creator Agent of Development SOEs Indonesia as the Value Creator Business Growth Business Risks Public Interests Pioneer Agent of Industry • Contribution of SOES to the Indonesian Economics amounted to Rp3,295 trillion during the last 10 years • SOES Total Assets continued to grow to reach Rp8,311.9 trillion in 2020 • Expansion to Regional & Global market *Consist of taxes, Dividend, and other Non-Tax Revenue Ensuring the SOES Business Growth Strategies to remain upholding to good risk management Ensuring the SOEs to become the foremost in fostering the prosperity of society, and ready to become the pioneer agent Long Term Sustainability SOES Indonesia as the Agent of Development • One Price Fuels (Pertamina) • Infrastructure of Electricity for the Villages (PLN) •Infrastructure Development (Trans Java, Trans Sumatra) To align those roles with the 2019-2024 vision of the current administration led by Joko Widodo and Ma'ruf Amin (sustainable infrastructure development, people development, large-scale investments, bureaucracy reform, and targeted state budget spending), the Ministry of SOE believe that transformation across SOEs is a necessary strategic policy to take in order to create SOES that are accountable, professional, and competitive. The transformation aims not only to optimize the substantial business creation capacity of SOEs to drive revenues, but more importantly to anticipate the changing business landscape globally driven by information technology and digitalization that have become the game changers in industries. Central to the fundamental transformation processes in business and operations is people transformation. All employees in the SOE Ministry and under the SOES are united by the same spirit, "SOE for Indonesia", and strong core values of "AKHLAK" (Trustworthy, Competent, Harmonious, Loyal, Adaptive, and Collaboration). The adoption of the slogan and values aim to ensure the transformation can create a new culture in SOES, a culture that upholds corporate accountability, professionalism, performance, productivity, and national and international competitiveness, as well as one that minimizes political intervention. RESILIENCE AMIDST UNCERTAINTY 19
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