REPUBLIKA.CO.ID, JAKARTA - The establishment of state owned enterprises (SOEs) holding was necessary to develop business, an analyst of SOE, Sunarsip, said.
Merger among SOEs will open wider access to their capital and increase their revenue. They can also penetrate better to domestic as well as foreign market.
"A corporate term says, size matters. It is unprofitable and inefficient to have a number of small companies but low productivity," he said on Friday.
He cited an earlier examples when five fertilizer companies merged under the flag of of PT Pupuk Indonesia while some cement companies merged into PT Semen Indonesia. According to Sunarsip, several state owned forestry and plantation companies could merge into one holding company.
Government through Ministry of SOEs will establish a holding company consist of plantation companies (PT Perkebunan Nusantara I-XIV) and forestry companies (PT Inhutani I-V). PT PN III will lead the holding company for state owned plantations. Ministry of Agriculture has agreed with merger plan.
"The merger will improve efficiency because they have the same core business," Deputy Minister of Agriculture, Rusman Heriawan said.
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