In a significant move, President-elect Prabowo Subianto has announced plans to restructure Indonesia’s Ministry of State-Owned Enterprises (BUMN), modeling it after Singapore’s Temasek Holdings to strengthen its role in the national economy.
Prabowo Subianto’s incoming administration is set to reform Indonesia’s BUMN Ministry, drawing inspiration from Temasek, Singapore’s highly successful state-owned investment company. This reform is considered crucial for improving economic efficiency and enhancing the performance of state enterprises.
The proposed restructuring by Prabowo aims to professionalize the management of state-owned enterprises, ensuring they are managed with a focus on commercial viability and strategic economic contribution.
Laode Masihu, a senior member of Prabowo’s economic team, emphasized that the new model would enable Indonesia’s state enterprises to adopt a more dynamic and globally competitive stance, similar to Temasek’s success.
The plan involves benchmarking against global best practices in state asset management, with Temasek’s investment and portfolio management strategies serving as a key reference.
Prabowo’s strategy also includes drawing lessons from China’s management of state-owned businesses, aiming to combine the best practices of both Temasek and Chinese models to optimize BUMN operations.
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The transformation of the BUMN Ministry is expected to fuel significant economic growth, aiming to boost Indonesia’s economic performance and reduce dependence on foreign investment by fostering strong, self-sustaining national enterprises.
This ambitious overhaul could redefine Indonesia’s economic landscape, potentially increasing state revenue and strengthening the country’s strategic economic sectors. If successful, the impact could resonate well beyond Indonesia, offering a new model for state-owned enterprise management in emerging markets.
President-elect Prabowo Subianto’s plan to reorganize Indonesia’s Ministry of State-Owned Enterprises along the lines of Singapore’s Temasek reflects a significant shift towards enhancing state-driven economic growth through professional and strategic asset management.
Sources: Kompas, Kumparan Bisnis (2024)
