Transformation of SOE Ministry Annual Report 2020
CHAPTER 1
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SOE ROADMAP & TRANSFORMATION
MINISTRY OF STATE-OWNED ENTERPRISES
ANNUAL REPORT 2020
PRIORITY 2:
BUSINESS MODEL INNOVATION
PLN TRANSFORMATION: POWER BEYOND
GENERATIONS
On April 21, 2020, PLN began its transformation with
the tagline "Power Beyond Generations". The tagline
expresses the determination of making energy available
to all generations and of maintaining PLN as a healthy
corporate entity. PLN is determined to realize the vision of
"Being the Leading Electricity Company in Southeast Asia
and #1 Customer Choice for Energy Solutions."
PLN's transformation is visualized in the "PLN 2024
Aspirations" that identify four initiatives, namely Green,
Innovative, Lean and Customer Focused:
a. Green: Increasing the use of green energy to
power future generators considering their minimal
environmental impacts and prices that are going
to be more economical over time. This is part of
PLN's efforts to protect the future generations by
MERGER OF BANK SYARIAH INDONESIA
As part of the focus on developing sharia finance in
Indonesia, the Ministry of SOE initiated the merger of state-
owned sharia banks. The objectives of the merge are as
follows:
a. To establish a globally competitive sharia bank in
Indonesia (potentially to become the Top 10 Sharia
Bank in terms of Market Cap).
b. To enable the development of new sharia products
that are globally competitive and profitable by
leveraging the organization's substantial capacity.
c. Provide the best digital customer experience and
sharia products, driven by the bank's variety of
products and technological capabilities.
d. With extensive branch network (+1,200), the bank can
provide the services needed by sharia customers in
Indonesia.
contributing to increasing the share of renewable
energy in Indonesia's energy mix as targeted by the
Government.
b. Innovative: Creating innovative business models in the
electricity ecosystem that contribute to PLN's revenue
outside of kWh sales. Innovative also means trying to
be adaptive to the demands of the times as well as
creatively seizing opportunities and finding solutions.
c. Lean: Streamlining business processes and operations
so that they become more agile and faster in facing
changes and being a reliable electricity provider at
affordable prices.
d. Customer Focused: Striving to provide the best
satisfaction and service to customers through world-
class quality and services.
e. Through increased revenue and synergy in cost
management, the bank will bring positive impacts on
a more efficient company growth.
56.8%
60.0%
BRI mandırı
17.4%
60.0%
BNI PUBLIK
51.2%
25.0%
6.4%
BSI
BANK SYARIAH
INDONESIA
mandırı BNI BRISyariah
syariah
Syariah
INSURANCE HOLDING
Indonesia Financial Group (IFG) has been officially
designated as the holding company for state-owned
insurance and guarantee enterprises. The designation
is based on Government Regulation No. 20/2020
concerning the Addition of State Equity Participation
into the Share Capital of PT Bahana Pembinaan Usaha
Indonesia (BPUI), commonly referred to as IFG. With
consolidated assets of Rp72.5 trillion, IFG has nine holding
members, namely PT Asuransi Kredit Indonesia (Askrindo),
PT Jaminan Kredit Indonesia (Jamkrindo), PT Jasa Raharja,
PT Asuransi Jasa Indonesia (Jasindo), PT Bahana Sekuritas,
PT Bahana TCW Investment Management, PT Bahana
Artha Ventura, PT Grahaniaga Tata Utama, and PT
Bahana Kapital Investa.
BUILDING HEALTH RESILIENCY
Even before the pandemic, health security has always
been a priority for the Ministry of SOES. The health
resilience roadmap has four strategic objectives, namely
the provision of quality health services, network and scale
enhancement, capability development and innovation,
and integration and collaboration of the national health
ecosystem.
The SOE Ministry has identified short, medium, and long-
term programs to realize the roadmap. For the short term,
Bio Farma was transformed into the state-owned holding
company in pharmaceuticals. The SOE Ministry also
strengthened state-owned hospitals holding company
under Pertamedika IHC. For the medium-term, the focus is
emphasized on increasing the capacity of research and
development of vaccines and the production of domestic
drugs.
For the long term, the vision is for the holding companies
to grow at a global scale, focusing on preventive health
measures comprehensively. Thanks to the readiness of
the SOE Ministry and the concerned SOES, the majority
of actions under these programs were accelerated and
accomplished in the first year of the roadmap.
In 2020, the consolidation of Bio Farma, Indofarma, and
Kimia Farma into a state-owned pharmacy holding
company, as well as the presence of eight new state-
owned hospitals under Pertamedika IHC played a
strategic role in building a coherent supply chain between
state companies in the health sector. The additional eight
hospitals would make Pertamedika IHC the largest hospital
network in Indonesia by 2021 with a total of 74 hospitals
and 143 clinics. The empowerment of state-owned health
resources has become a game changer in handling the
COVID-19.
IFG's appointment as the holding company is attributed
to its flexibility and strong capability in investing. IFG
also has business lines that can be incorporated in the
insurance and security ecosystem, making it suitable
to be a gameplay regulator. IFG can also issue funding
instruments and exercise other capital allocations. The
establishment of State-Owned Insurance and Security
Holding also has the potential to provide benefits to the
state, society, the insurance industry, as well as the state-
owned insurance and security themselves.
SOE RESTRUCTURING
In 2020, there were recovery and restructuring efforts
conducted on several SOES, including Jiwasraya,
PTPN, and Krakatau Steel. In each enterprise, the
efforts were accompanied by business turnaround
objectives, business model improvements, organizational
transformation, and various other corporate actions.
In Jiwasraya, the measures to salvage insurance policies
include policy restructuring portfolio transfer, and policy
rescue funds. Meanwhile, PT Krakatau Steel received
PEN (National Economic Recovery) program assistance
of mandatory convertible bonds (OWK) as loan. Worth
Rp3 trillion, the bonds would be used for working and
operating capital. PT Perkebunan Nusantara III (Persero)
received subordinated term loan facility of Rp4 trillion
to overcome short-term liquidity pressures, maintain
continuity of investment execution, and to meet working
capital needs.
In 2020, the Ministry of SOE authorized PT Perusahaan
Pengelola Asset (Persero) or PPA to improve SOES'
management efficiency and effectiveness. To that end,
the measures include SOE restructuring and revitalization,
development and optimization of non-strategic SOES,
and optimization of minority share ownership portfolios. As
of the end of 2020, there were 24 SOES managed under
the PPA.
Furthermore, a Restructuring Acceleration Team was
formed to improve coordination and synergy between
agencies related to the implementation of the SOE
restructuring program. The Team's Steering Committee
is led by the Minister of SOE and the Minister of Finance,
while the Implementing Team is chaired by the SOE
Deputy Minister I, SOE Deputy Minister II, and Deputy
Minister of Finance.
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RESILIENCE AMIDST UNCERTAINTY
RESILIENCE AMIDST UNCERTAINTY
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