Transformation of SOE Ministry Annual Report 2020
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MINISTRY OF STATE-OWNED ENTERPRISES
MINISTRY OF STATE-OWNED ENTERPRISES
FOREWORD FROM THE MINISTER OF SOE
ANNUAL REPORT 2020
Assalamualaikum Warahmatullaahi Wabarakaatuh
Greetings of Peace
Om Swastyastu, Namo Buddhaya
Greetings of Virtue
Extending my gratitude to God Almighty, I am pleased
to report that the Ministry was able to navigate the
challenges posed by the COVID-19 pandemic in 2020.
As we are aware, the pandemic has slowed down
the national and global economic growth. Nearly all
economic sectors were affected with downturns in both
demand and supply that curbed activities in the real
sectors. The SOEs were no exception. The performance
of almost 90% of SOES contracted with only SOEs in the
Telecommunications and Fertilizer-Food clusters that
reported growth in 2020.
In response, the SOE Ministry promptly took strategic
measures in economics, business, and social aspects to
alleviate the impact of the pandemic on our society.
On business and economics, we focused on enhancing
the SOEs resiliency and maintaining business continuity.
We also strengthened corporate governance practices,
ensuring that each SOE is performing a robust governance
system.
Some of the various measures taken to strengthen SOES
were part of the Economic Recovery Initiative (PEN),
which was formalized through the Government Regulation
No. 23 of 2020, in lieu of Regulation No. 43 of 2020. For
SOES, PEN activities included to expedite the settlement
of the Government's payables to SOES, increase state
capital investments of SOES engaged in the national
strategic projects, and bail-out funds for SOEs with liquidity
issues triggered by the pandemic.
These recovery measures were aimed at enabling the SOE
Ministry to sustain the SOES that, in turn, are expected to
bring Indonesia to rise above the COVID-19 pandemic.
We also reviewed our strategic plans and adopted
the SOE Ministry Roadmap 2020-2024. Our target is to
conclude all strengthening and recovery efforts by the
end of the second half of 2021. Following that, SOEs are
expected to be in the forefront of Indonesia's growth.
To follow-up the President's direction on bureaucracy
reform, we then carried out internal restructuring to create
a leaner organization and to streamline our business
processes. From 182 structural positions, we now have
just 38 structural positions. Through the reform, we hope
to build a clean, accountable, and capable Ministry of
SOE to provide fast, appropriate, and professional public
services.
I believe that the reform and the
alignment of our core values to
AKHLAK (Trustworthy, Competent,
Harmonious, Loyal, Adaptive,
and Collaborative) will make the
SOE Ministry even more resilient
in addressing the future and
increasingly dynamic challenges.
For the society, we did everything
we could to protect and serve
not only the people within SOES,
but also the public at large. We
supported the operations of the
athlete housing complex, Wisma
Atlet, as the COVID-19 Emergency
Hospital; built a modular hospital
that is dedicated to treat COVID-19
patients in Simprug area, South
Jakarta; set up vaccination centres
for senior citizens in several cities; and
raised and distributed donations from
SOES and national and international
private companies through the SOE
Foundation. The SOES have also
become the Government's trusted
partner, PT Bio Farma (Persero) Tbk
has been tasked to procuring and
securing vaccines for Indonesia;
Perum Bulog, state-owned banks,
and PT Pos Indonesia (Persero) have
disbursed the Government's social
assistance to eligible households; and
PT Telkom (Persero) Tbk created the
COVID-19 screening and tracking
app (PeduliLindungi).
Furthermore, I am grateful that the
Ministry of SOE for the first time was
able to prepare its consolidated
financial statements for fiscal years
2020 and 2019. The statements have
been reviewed by Ernst & Young
Public Accountant Firm.
Despite the tough times amid the
pandemic, our consolidated financial
performance continued to record
a net income of Rp13.3 trillion. A
decrease of 89% compared to the
pre-pandemic period in 2019. Several
factors contributed to the decline,
such as decrease of revenues due
to the overall weaker economy
and the application of conservative
accounting standards following the
adoption of SFAS 71, 72, and 73.
These standards resulted in increased
allowance for impairment in the
banking sector and cost of funds due
to the capitalization of several leases
in the Energy, Oil, and Gas Cluster
and the Tourism and Supporting
Services Cluster.
On assets, we reported Rp8,311.9
trillion of SOE consolidated assets
as of 31 December 2020, or up 6.9%
compared to the previous year. Asset
growth was particularly prominent
in the banking sector. In the non-
financial cluster, asset increase also
occurred due to lease capitalization
following the adoption of SFAS 73.
As for liabilities, the consolidated
liabilities of SOEs stood at Rp5,837.2
trillion or up 10.6% compared to the
previous period. This increase was
mainly driven by the increase of third-
party funds in banks.
Moreover, in 2020 we noted
an improvement in the overall
accountability assessment of the
Ministry. Our scores improved across
the board: SPIP (Internal Control
System) to 3.1, SAKIP (Government
Agency Performance Accountability
System) to 74.6 (BB), and
Bureaucracy Reform score rose to
77.7. Last but not least, our financial
statements received Unqualified
Opinion for the fourteenth
consecutive time.
Through this annual report, the
Ministry hopes to communicate to
the public and stakeholders the
initiatives that are in place and the
endeavours we are taking to place
SOEs as the engine of Indonesia's
economic development. While it has
been projected that the impacts of
the COVID-19 will continue in 2021,
the Ministry is determined to use this
crisis as a momentum to improve
and to stay relevant to ensure that
Indonesia can come out of the
pandemic better and stronger.
SOES for Indonesia!
Wassalammu'alaikum
Warahmatullahi Wabarakaatuh
Om Shanti Shanti Shanti Om
Namo Buddhaya
Greetings of Virtue
Erick Thohir
Minister of State-Owned Enterprises
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RESILIENCE AMIDST UNCERTAINTY
RESILIENCE AMIDST UNCERTAINTY
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