Jakarta: The House Representative (DPR) supports the dissolution of ailing State-Owned Enterprises (BUMN). The reason is, the state-owned company only spends people's money through State Capital Participation (PMN).
"SOEs that are ineffective and tend to spend people's money are better closed, because they are only a burden on the state," said DPR Speaker Puan Maharani in a written statement, Tuesday, October 19, 2021.
The former Coordinating Minister for Human Development and Culture (PMK) highlighted the number of state-owned companies that received PMN injections. Various efforts have been made, but have not been able to improve the condition of the company.
"It's useless to survive, but can't move forward due to poor corporate governance and the low professionalism of the management," she said.
Puan reminded that one of the goals of establishing BUMN is to provide public benefits for the community. If this goal is not achieved, the government's rescue will be in vain.
"PMN originating from the APBN, which is people's money, should be used by SOEs to help the national economy, and contribute to improving people's welfare, not even 'disappearing' bad management," she asserted.
Poor corporate governance is suspected because there are many internal 'games' in state-owned companies. According to Puan, problems like this must be resolved to the root.
"So we support the various efficiency efforts carried out by the Ministry of SOEs against bad state-owned companies," she added.
Puan also asked the government to inject PMN funds appropriately. He reminded SOEs not to be complacent because they get easy capital.
"SOEs that receive financial assistance must be innovative so that their companies bring benefits to the state, which will lead to an increase in people's welfare," said Puan.
The DPR will oversee the governance of SOEs. In particular, companies that receive PMN from the state budget.
"So that the benefits of the people's money will return to the people, not be lost by bad state corporate governance," she said.
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