Explaining State Enterprise Hotel, Prabowo Asks for Erick Thohir Suggestion

REPUBLIKA.CO.ID, JAKARTA -- Minister of State-Owned Enterprises (BUMN), Erick Thohir, fully supports the move of Defense Minister (Menhan) and presidential candidate (Capres) Prabowo Subianto to push for rationalization of state-owned enterprises privatization. This was stated by Prabowo while attending the Mandiri Investment Forum (MIF) 2024 event in Jakarta, Tuesday (5/3/2024). In his speech, Prabowo asked Erick for input on the existence of SOE hotels.

“We don't need state-owned hotels. What do you think of Mr. Erick? But I ask for your advice. I want to take a sensible approach, I want to get as much advice from anywhere and I want the best inputs,” Prabowo said.

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Erick said Prabowo's statement was in line with the SOE Ministry's 2024-2034 roadmap. Erick wants the number of state-owned enterprises to be reduced in order to improve the efficiency and competitiveness of red plate companies in the future.

“In the 2024-2034 roadmap, if SOEs can, the number is 30, which is now from 108 to 41 it is only this year. As Mr. Prabowo said, for example, is it necessary for state-owned enterprises to have many hotels,” Erick said.

Prior to his tenure as Minister of SOE, Erick said the number of state-owned hotels was very large. In fact, almost every SOE has their own hotel. Erick also began to make a breakthrough with the establishment of an Indonesian hotel holding under the auspices of PT Hotel Indonesia Natour. Erick called the presence of SOE hotels an effort for transformation and efficiency of SOE hotels going forward.

“Indeed, once every state-owned enterprise had hotels, now in my day those hotels are consolidated into one umbrella, which is 122 hotels,” Erick said.

Erick said SOEs as a third of Indonesia's economic power should have three important things. First, it must be a healthy corporation and make fiscal contributions in the form of taxes, dividends, etc. Secondly, as a locomotive of national economic development.

“For example, making Sanur (KEK) a health tourism center and the last most important is the population economy where state-owned enterprises are 92 percent, ultra micro and micro are still in state-owned enterprises,” Erick said.