Erick Thohir's Strategic Step, Global Synergy with the US-ASEAN Business Council

Jakarta, May 25, 2023 – The Ministry of SOEs has strengthened its position as Indonesia's economic foundation for the global market by holding the US-ASEAN Business Council (US-ABC) Forum on Wednesday (24/5) at the Grha Pertamina Ballroom, Jakarta. The forum was attended by the Minister of SOEs - Erick Thohir, President and CEO of US-ABC - Ted Osius, Ambassador of the Republic of Indonesia to the United States and the Honorary Chair at US-ABC 2023 Indonesia Committee Mission - Rosan Roeslani, CEO of Citi Indonesia and US-ABC Indonesia Committee Chair – Batara Sianturi, with SOE leaders and US-ABC delegates.

There are several similarities in economic between Indonesia and the United States, in which both are growing rapidly. Thus the Ministry of SOE held the US-ASEAN Business Council discussion forum. The goal is to expand the existing potential in the SOE sector in Indonesia.

In his remarks, Erick Thohir said that in the last three years, the Government of Indonesia has embarked on ambitious and transformative steps for SOEs. SEO companies are encouraged to expand, focusing on several strategic sectors, from energy and mining to agriculture, plantations, telecommunications, and finance, because SOEs are Indonesia’s economy and development axis.

SOE transformation is done to compete and develop in a better direction, both domestically and globally. “This transformation is supported by our commitment in increasing efficiency, competitiveness, and transparency of our SOEs. We have implemented measures to improve corporate governance, encourage innovation and strengthen financial management. As a result, we have seen concrete developments in state-owned enterprises. They become tougher, more productive, and better equipped to compete globally. Internationally, SOEs are spread across 17 countries," Erick said.

In more detail, Erick revealed that SOEs are currently actively partnering with the private sector domestically and internationally in 12 different clusters. There are 307 main private sector partners, where 60 partners are multinational companies. "In Indonesia, we guide small and medium enterprises to be part of the SOE ecosystem in finance, capacity building training, and so on."

SOE plans not to only develop short-term gains businesses but also sustainability economically and environmentally, thus following the United Nations Sustainability Development Goals (SDGs). For this reason, partnerships continue to be developed in various sectors, such as renewable energy, sustainable agriculture, and eco-tourism. "Our strategy is not only for short-term gains. We focus on creating long-lasting and sustainable examples that SOE leaders can use to face the future.”

To that purpose, the SOE ministry plans to introduce further measures to improve corporate governance, increase accountability and foster a culture of continuous innovation for all state-owned corporations.

Erick Thohir also revealed that SOEs are expected to work more closely with international partners, including US companies. Through this collaboration, it is expected to increase value for the economy and society of both parties, especially with the US-ASEAN Business Council and the companies that are members.

This business collaboration forum also discussed issues in the aviation, energy, pharmaceutical, health sectors, and others. Attending the meeting were the US-ASEAN Business Council representatives, 28 SOEs, and 31 US-ASEAN Business Council Delegation Companies.**