Indonesian lawmakers see BUMN subsidiary consolidation boosting efficiency

Consolidating and streamlining subsidiaries of state-owned enterprises (BUMN) is a strategic move that can enhance operational efficiency and bolster the competitiveness of these companies, according to Christiany Eugenia Paruntu, a member of the Indonesian House of Representatives' Commission VI. This policy is also expected to optimize the contribution of BUMN to the national economy.

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Therefore, the consolidation steps taken by several large BUMN, including in the plantation, cement, and port sectors, deserve appreciation as an effort to build leaner, healthier, and more productive organizations.

Christiany highlighted that simplifying corporate structures is crucial for BUMN's transformation, enabling them to adapt better to business challenges. She noted that some BUMN have complex group structures with numerous subsidiaries, potentially leading to functional overlaps and increased operational costs. "Therefore, the consolidation steps taken by several large BUMN, including in the plantation, cement, and port sectors, deserve appreciation as an effort to build leaner, healthier, and more productive organizations," she stated.

However, Christiany emphasized that the success of restructuring hinges not only on reducing the number of subsidiaries but also on the effectiveness of post-merger integration. Key indicators of successful transformation include increased productivity, profitability, and the company's ability to create sustainable economic value. "We open the widest possible room for all stakeholders, including BUMN entities, labor unions, business actors, academics, and the public, to convey input, aspirations, and evaluations regarding the ongoing restructuring process," she added.

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We open the widest possible room for all stakeholders, including BUMN entities, labor unions, business actors, academics, and the public, to convey input, aspirations, and evaluations regarding the ongoing restructuring process.

The politician from the Golkar Party stressed the importance of incorporating feedback from various parties into the evaluation process to ensure BUMN transformation is inclusive and transparent, allowing its benefits to be widely shared. Commission VI will continue to oversee the transformation and restructuring of BUMN in collaboration with the Ministry of BUMN and Danantara, ready to address any emerging issues and find optimal solutions. The ultimate goal, she reiterated, is to create stronger, more efficient, and competitive state-owned companies that can drive national economic growth and deliver tangible benefits to the Indonesian people.

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So that it can be a driving force for national economic growth while providing real benefits to the Indonesian people.