Indonesia: Super holding company to replace function of SOEs Ministry

  • State-Owned Enterprises (SOEs) Minister Rini Soemarno has said that a super state-owned holding company may replace the functions of the SOEs Ministry.
  • She said a super holding company would be directly controlled by the president, just like Temasek in Singapore and Khazanah in Malaysia, which were controlled by those countries’ respective prime ministers.
  • President Joko “Jokowi” Widodo revealed his intention to establish a super state-owned holding company during the final presidential candidate debate on 13 Apr 19.
  • He said the holding company would become the ultimate parent company of state-owned holding companies. Rini, however, said such a super holding company needed approval from the House of Representatives.
  • The government has established three holding companies – state-owned oil and gas holding company Pertamina, state-owned holding plantation company PT Perkebunan Nusantara (PTPN III) and state-owned mining holding company PT Indonesia Asahan Aluminium (Inalum).
  • More holdings companies may be established, including a state-owned aviation holding company and state-owned construction holding company.

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