State-owned enterprises of Indonesia

The BUMN Untuk Indonesia ("SOEs for Indonesia") campaign was launched by the Ministry of State Owned Enterprises in April 2020;^[1] this logo was introduced together with a rebranding of the Ministry effective in 1 July 2020. It replaces the BUMN Hadir Untuk Negeri ("SOEs Serving the Nation") campaign, launched in 2016 in conjunction with the Ministry's 18th anniversary.^[2] The logo above appears in nearly all publicity made by Indonesian SOEs (usually placed in the upper-left corner), except Garuda Indonesia

In Indonesia, state-owned enterprises (Indonesian: Badan Usaha Milik Negara (BUMN)) play an important role in the national economy. Their roles includes contributor for national economy growth, providing goods or services which are not covered by private company, employment provider, providing support guidance to small and medium businessess, and source of government revenue.^[3] The Ministry of State Owned Enterprises represents the government's function as a shareholder of those companies.

Aside from SOEs, there are also provincially- or municipally-owned corporations, locally known as Badan Usaha Milik Daerah (BUMD). The primary difference between BUMNs and BUMDs is the ownership of the enterprise, whereas BUMNs is controlled by Ministry of State Owned Enterprise while BUMDs is directly controlled by local government. BUMDs roles are similar with BUMNs, with heavy emphasis on providing goods or services to the local community.

History[]

Dutch colonial era[]

Dutch East Indies Department for State-Owned Enterprises building

Headquarters of the Posts, Telegraph and Telephone Service of the Dutch East Indies, built simultaneously with the above building, now headquarters of Pos Indonesia

During the Dutch colonial era, the government had a monopoly on the opium, pawnbroking (nationalized in 1 April 1901), posts (including the Post Office Savings Bank), telegraph and telephone industry, as well as owning most of the railways and electric utilities. They are managed by the Department of State-Owned Enterprises (Dutch: Department van Gouvernementsbedrijven).

Post-independence[]

By the end of the Dutch–Indonesian Round Table Conference, the Indonesian government had a major or complete ownership on the public utility, buses, railways, banks and communications.

With the beginning of Guided Democracy in Indonesia, many Dutch-owned companies, or Indonesian branches of Dutch companies, were nationalized (see Nationalized Dutch companies below).

During the New Order, the nationalized companies were still state-owned. Some of the companies were listed in the Jakarta Stock Exchange later on.

Today the largest banks in Indonesia are mostly state-owned.^{[citation needed]}

List of foreign companies nationalized during Guided Democracy[]

This list is incomplete; you can help by . (October 2019)

• The Indonesian businesses of Nillmij becomes PT Asuransi Jiwasraya (Persero). In the Netherlands, Nillmij eventually becomes Aegon N.V.
• The national compulsory auto insurance provider, Jasa Raharja, was originally a merger of several nationalized insurance companies.
• Bank Mandiri was a merger of:
  • Bank Ekspor Impor Indonesia (BankExim), formerly the Indonesian branch of Nederlandsche Handels Maatschappij which eventually becomes ABN AMRO
  • Bank Bumi Daya (formerly Bank Umum Negara), the result of the nationalizations of Nationale Handelsbank and the Chartered Bank of India, Australia and China (now Standard Chartered; the latter returning to Indonesia after the New Order went into power)
  • Bank Dagang Negara, formerly Escomptobank, also predecessor to ABN AMRO
  • Bank Pembangunan Indonesia (Bapindo), state-owned since establishment
• Bank Rakyat Indonesia was known as
  • 1845: "Purwokertoan Assistance and Savings Bank for Native Aristocrats" (Dutch: De Purwokertosche Hulp- en Spaarbank der Inlandsche Hoofden).
  • 1934-42: "General Public Credit Bank" (Dutch: Algemene Volkskredietbank),
  • 1942-45: Shomin Ginkō (庶民銀行, "Common People's Bank") during Japanese occupation
• Bank Tabungan Negara was known as
  • 1897-42: "Post Office Savings Bank" (Dutch: Postspaarbank)
  • 1942-45: Savings Office (Japanese: 貯金局, Hepburn: Chokin-kyoku, Nihon-shiki:Tyokin-kyoku)
  • 1945-63: "Post Office Savings Bank" (Indonesian: Bank Tabungan Pos)
• Construction industry:
  • Hollandsche Beton Maatschappij (eventually acquired by Royal BAM Group) becomes Hutama Karya
  • Architecten, Ingineurs en Aannemersbedrijf Associatie Selle en de Bruyn, Reyerse en de Vries NV becomes Adhi Karya
  • Royal Adriaan Volker Group (now VolkerWessels) trading as Volker Aannemingsmaatschappij NV in Indonesia, becomes Waskita Karya
  • Aannemingsmaatschapij "De Kondor" NV (later IBB-Kondor and KondorWessels and now VolkerWessels) becomes Kumala Karya, defunct 1971
  • Nederlandse Aannemingsmaatschappij NV (now Ballast Nedam) becomes Nindya Karya
  • NV Architecten-Ingenieursbureau Fermont te Weltevreden en Ed. Cuypers te Amsterdam becomes Virama Karya
  • NV Technisch Handelmaatschappij Vis & Co. becomes Wijaya Karya
  • Indonesian Electrical and Mechanical Engineers and Contractors (INDEMEC) C.V. formerly Technisch Bureau H&S becomes Indra Karya
  • PT Biro Arsitek Job & Sprey/Architectenbureau Job en Sprey NV becomes Yodya Karya
  • NV Air Bersih
• Indonesia Trading Company (Perusahaan Perdagangan Indonesia) is a nationalized company from several trading companies such as N.V. Borneo Sumatra Maatschappij (Borsumij), Internationale Crediet- en Handelsvereeniging "Rotterdam" (Internatio, one of the predecessors of Imtech), Lindeteves, and Geo Wehry.
• PT Sang Hyang Seri from Pamanukan & Tjiasem Lands (since 1940, nationalized at 1957).
• PT Rajawali Nusantara Indonesia from Kian Gwan (nationalized at 1961).
• Perum DAMRI (Djawatan Angkoetan Motor Repoeblik Indonesia) from the Java Transportation Enterprise (Japanese: ジャワ運輸事業社, Hepburn: Jawa Un'yu Jigyōsha, Nihon-shiki: Zyawa Un'yu Zigyôsya) and Automobile Board (Japanese: 自動車総局, Hepburn: Jidōsha Sōkyoku, Nihon-shiki: Zidôsha Sôkyoku).
• PT Garuda Indonesia
  • 1928-42: Royal Dutch Indies Airways (Koninklijke Nederlandsch-Indische Luchtvaart Maatschappij)
  • 1947-49: KLM Interinsulair Bedrijf
• Indonesian Railway Company (Kereta Api Indonesia)
  • 1963-42: Nederlandsch-Indische Spoorweg Maatschappij
  • 1875-42: Staatsspoor-en-Tramwegen in Nederlandsch–Indië
  • 1945-58: Staatsspoorwegen Verenigde Spoorwegbedjrif (SS/VS) (fully nationalized at 1958)
• Pengangkutan Penumpang Djakarta
  • 1925-42,45-54 : Bataviache Verkeers Maatchappij (BVMNV)
  • 1942-45: Jakarta Tram (ジャカルタ市電, Jakarta Shiden)

Types of SOEs[]

Since 2003, there are two types of state-owned enterprises (SOEs) in Indonesia:

• Perusahaan Umum (Perum) (lit. "public company"), are statutory public-benefit corporations with no shareholders. The main purpose of these SOEs is to provide goods and/or services to public. These firms are allowed to pursue profits. Perums, however, are increasingly rare as the government are converting many of them into perusahaan perseroan (see below), especially after the 1980s.
• Perusahaan Perseroan (Persero) are SOEs which are perseroan terbatas (PT) (i.e. a joint-stock company). This type of SOE is more independent than the Perums and the main goals of these firms are to gain profits and contribute to government revenue. This type of SOE is easy to recognize because they have the term Persero attached to their names. These SOEs, however, are subject to general perseroan terbatas laws, and similar to ordinary PTs its establishment and amendments to its articles of association, including increases to its capital, must be executed before a civil law notary with a notarial act, unlike Perums where its Articles of association (including amendments and capital increases) is directly legislated.
  There are two sub-type of Perusahaan Perseroan:

1. Perusahaan Perseroan Terbuka (Persero Tbk.), or Public company, which are enterprises whose ownership belongs both to the government and to the general public which issue freely traded shares the stock exchange (or in over the counter markets). This subtype of SOEs also has the suffix Tbk. attached to their names.
2. Perusahaan Perseroan Pemerintah which are enterprises whose ownership are 100% government-owned.

Until 2003, there was also another type of SOE called Perusahaan Jawatan (Perjan/PJ) (lit. service company) which had operational costs funded from the national budget. Employees of these SOEs were civil servants and the companies were regarded as government agencies. Firms in this category have been either upgraded into other types of SOEs or converted into government agencies.

List of companies[]

Information on the state-owned enterprises (SOEs) is drawn from the Ministry of State Owned Enterprises portal.^[4]

Indonesian SOEs subdivided into 12 clusters.

See also[]

• State owned enterprise

References[]

External links[]

• Official website of the Ministry of SOEs of the Republic of Indonesia