In the Presence of Hundreds of UGM Students, Minister Rini Exposed the Strategy to Lead the Ministry of SOEs

INDUSTRY.co.id - Yogyakarta - In order to provide an understanding of the leadership in State-Owned Enterprises (BUMN), Minister of SOE, Rini M. Soemarno gave a public lecture entitled 'Executive Series: Nurturing and Managing Leaders In State-Owned Enterprises of Indonesia' for Master's Degree Program in Management, Faculty of Economics and Business Universitas Gadjah Mada (UGM) at UGM Campus Auditorium Yogyakarta on Thursday (12/04/2018).

On the occasion, Minister Rini explained about the strategy of managing 143 state-owned enterprises under the Ministry of State Milk Enterprise. According to Rini, SOEs as state-owned corporations in practice must be professionally managed, transparent and able to create value and contribute to the state. Therefore, she admits having a big role and responsibility to continue to make SOEs more powerful and survive in the future.

To be able to manage the BUMN professionally, according to Rini, the standardization of management in the form of competence and qualification shall be stipulated for the Directors who lead the BUMN.

"My job as Minister of SOEs is to create programs where these SOEs can be managed properly. And the main thing is that SOEs are State Owned Enterprises which means owned by the people of Indonesia so that must be professionally managed, have to make a profit and at the same time also have to become agent of development. In 2017, state-owned assets are recorded at Rp 7,212 trillion, up from Rp 4.387 trillion in 2014," said Rini.

In carrying out its role, Rini also continues to encourage SOEs to be able to perform its functions as a development agent that also supports the nation's economic growth. SOEs are present in every implementation of national strategic projects that support the Indonesian economy directly such as the development of tolls, land and air tolls as well as projects that support increasing electrification and economic participation in the outer regions.

In the last three years, it has been recorded that 568 km of toll roads have been built, or almost to reach the length of toll roads built since 1980 to 2014 that are recorded along 700 km. On the other hand, Indonesia's electrification ratio has now reached 95% supported by an increase in power generation capacity of 17,000 MW or exceeds 50% of the government's target of 35,000 MW until 2019.

"SOEs also not only grow from state capital, but also from loans commercially. So on the one hand we pay the debt, we also have to pay taxes, dividends to the state. If SOEs can increase the value of the company then we are also able to increase the wealth of the country. Therefore, the balancing must be well maintained. This is what we have to run and not an easy thing. On the one hand must increase profit, but at the same time we have to run the government's assignment," said Rini.

Rini also explained about the importance of increasing competitiveness and the role of SOEs in national development through the strength of economies of scale and holding and synergy. The synergy of SOEs will increase efficiency and strengthen one SOE to other SOEs that ultimately can encourage the power of SOEs to accelerate the development of national strategic projects through an integrated management. The synergy of SOEs also makes it more professionally managed and dynamic, can follow the development of the world.

"I always invite the Directors of SOEs to come to the field, to actually see the condition of society in remote areas. I also emphasize the Culture of SOEs as a "big family of corporations" owned by the state which means also owned by the people so that SOEs should have empathy to the nation by creating value and encouraging economic growth" said Rini.

At the end of her presentation, Minister Rini invited the students to stay open and learn to pursue themselves as leaders in the future. Students are also invited to continue to optimize every available resource to become a useful person for the nation and country.

"We have to keep learning, no day without learning. Learning is an endless job. Our capabilities have to be optimized. Being a leader is not the popularity sought but how our ability can we maximize and benefit others," added Rini.