State-owned Enterprise in Indonesia

In Indonesia, state-owned enterprises ( id, 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. 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. In addition, there are also village-owned enterprises which are run by village governments.

History

Dutch colonial era

During the Dutch colonial era, the government had a monopoly on the opium, pawnbroking (nationalized on 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 ( nl, 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.

List of foreign companies nationalized during Guided Democracy

* 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" ( nl, De Purwokertosche Hulp- en Spaarbank der Inlandsche Hoofden).
** 1934-42: "General Public Credit Bank" ( nl, Algemene Volkskredietbank),
** 1942-45: during Japanese occupation
* Bank Tabungan Negara was known as
** 1897-42: "Post Office Savings Bank" ( nl, Postspaarbank)
** 1942-45:
** 1945-63: "Post Office Savings Bank" ( id, 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''
* Perusahaan Perdagangan Indonesia (''Indonesia Trading Company'') 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 and .
* PT '' Garuda Indonesia''
** 1928-42: Royal Dutch Indies Airways ()
** 1947-49: KLM ''Interinsulair Bedrijf''
* Indonesian Railway Company ()
** 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:

Types of SOEs

Since 2003, there are two types of state-owned enterprises (SOEs) in Indonesia:
* (), 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.
* 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'':
# ''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.
# ''Perusahaan Perseroan Pemerintah'' which are enterprises whose ownership are 100% government-owned.

Until 2003, there was also another type of SOE called () 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.

Indonesian SOEs subdivided into 12 clusters.

See also

* State owned enterprise

References

External links

*

{{State-owned enterprises by country, Asia

Indonesia