Speech of the President of the Republic of Indonesia in front of the President Director of State-Owned Enterprises
Indonesian President Joko Widodo (Jokowi) wants State-Owned Enterprises (BUMN) to be able to compete in the international arena. Therefore, it is necessary to have the ability to respond and adapt as quickly as possible to the era of industrial revolution 4.0, technological disruption, and the COVID-19 pandemic. This was conveyed by the President when giving directions to the Managing Directors of SOEs at the Meruorah Komodo Hotel, West Manggarai Regency, East Nusa Tenggara (NTT), Thursday (14/10/2021). “This is what we want to bring this BUMN to go global, to compete internationally. So, yes, you have to start organizing, adapting to the business model, the technology, the most important thing. The world is like this, the industrial revolution 4.0, technological disruption, there is a pandemic," said the President. The Head of State asked all state-owned companies to be able to adapt to new business models in line with technological developments, one of which is by collaborating and collaborating with other global companies. "If you want to be fast, we adapt, the quickest way is to partner, which global company is the best, invite it, definitely want it with us," he said. In addition, the President also reminded state-owned companies to pay attention to economic aspects and indicators of the efficiency level of their investments or the internal rate of return (IRR). “Please count, because whatever this BUMN is a state company, its social impact is also calculated. And most importantly, continue to review the economy. Counting, calculating so that we can know what future growth will be like,” said the Head of State. The President said, to be able to survive in the era of the industrial revolution 4.0, a company needs to prepare its human resources and ecosystem so that it can adapt to these technological developments. “What is called business transformation, which is called technology adaptation has become a necessity and cannot be helped. We only count, we are racing," said the President.Indonesian President Joko Widodo (Jokowi) emphasized the importance of building professionalism and basic values in the leaders of State-Owned Enterprises (BUMN). According to him, the main directors of SOEs are selected people who are expected to be confident in facing competition both nationally and globally. This was conveyed by the President when giving directions to the main directors of SOEs at the Meruorah Komodo Hotel Ballroom, West Manggarai Regency, East Nusa Tenggara, Thursday (14/10/2021). "This, once again, I need to convey and I have said this before, because what we want to build is professionalism," said the President. The Head of State also asked the main directors of SOEs to build a simpler work culture. He wants complex government workflows not to be implemented in SOEs. For example, licensing for power plants. The President said that there were 259 licensing documents with different names but the intent in the letter was the same. “The time required to seek a permit can be 3 years, 4 years, 5 years, 6 years, 7 years. There is a 7 year old complain to me. Well, this is something that has to be cut down, it's not allowed, for example, at PLN to be long-winded. I can't anymore," he continued. In addition, the President reminded that the complexity of the bureaucracy will affect investment in Indonesia. “Who wants to invest if it's complicated like that? It's already complicated at the ministry, in the area it's complicated, getting into BUMN is even more complicated. Run everyone," he added. Furthermore, the President asked the president directors of SOEs who were present both physically and online to be bolder in competing and taking risks. The Head of State also instructed the Minister of BUMN to no longer protect BUMN companies in a declining condition. “So, there is no longer such thing as protections, already. Already, forget the Minister, the name of the protections," he added. On that occasion, the President said that SOEs in Indonesia had begun to merge, consolidate and reorganize. Currently, the number of state-owned companies in Indonesia is 41 from the previous 108 companies. "This is a very good foundation, then clustered, that's also good," said the President. (BPMI SETPRES/HIM/UN)
Source: https://setkab.go.id/unjukkan-bumn-go-global-ppresident-minta-