69: Walk the Talk
I'm not sure how many times the government officials stated this: Number of state-owned companies would be reduced significantly through merger, privatization, etc. The difference, this time VP Jusuf Kalla put 69 SOEs as the ultimate target by 2009, meaning we have to cut 70 SOEs out of the existing 139 companies. Is it a joke or what?
MSOE Sugiharto has the details: Reducing 37 companies in 2007, 15 next year, and another 18 in 2009. I'm not saying that's not good. In fact we love to have one or two SOEs but they could provide more profits & jobs to the state. What's the benefit of having 139 SOEs except to provide posts of 139 CEOs, thousands of commissioners, board of directors, to colleagues or as part of political bargaining?
But my very humble concern is delivery or execution of the 69 model. Look at what we've experienced with the plan to merge state-owned banks BNI and BTN, or the plantations, fertilizers, construction, consultings, etc. After months of discussion, debate, waste of money, the merger plans went nowhere.
I could imagine the whole plan would be difficult if not impossible, especially if we look at process. First of all, the plan should be approved by related ministries such as finance, coordinating minister for the economy, and then the House of Representatives (DPR).
But MSOE Sugiharto might take short-cut like establishing holding companies for banks, plantations, mining, fertilizers, insurance, construction, etc...and you can easily have 69 group of companies...with more CEOs to share...
READ MORE!!!
MSOE Sugiharto has the details: Reducing 37 companies in 2007, 15 next year, and another 18 in 2009. I'm not saying that's not good. In fact we love to have one or two SOEs but they could provide more profits & jobs to the state. What's the benefit of having 139 SOEs except to provide posts of 139 CEOs, thousands of commissioners, board of directors, to colleagues or as part of political bargaining?
But my very humble concern is delivery or execution of the 69 model. Look at what we've experienced with the plan to merge state-owned banks BNI and BTN, or the plantations, fertilizers, construction, consultings, etc. After months of discussion, debate, waste of money, the merger plans went nowhere.
I could imagine the whole plan would be difficult if not impossible, especially if we look at process. First of all, the plan should be approved by related ministries such as finance, coordinating minister for the economy, and then the House of Representatives (DPR).
But MSOE Sugiharto might take short-cut like establishing holding companies for banks, plantations, mining, fertilizers, insurance, construction, etc...and you can easily have 69 group of companies...with more CEOs to share...
Labels: Privatization
READ MORE!!!
posted by yosef at 8:08 AM
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