Indonesia's state-owned firms face big overhaul

Minister seeks to clean up scandal-hit sector, boost governance and competitiveness

Indonesia's Minister of State-owned Enterprises Erick Thohir has commissioned McKinsey and Boston Consulting Group to recommend an overhaul of the state-owned sector that would marry up struggling companies with healthier ones, improve skills, and sc
Indonesia's Minister of State-owned Enterprises Erick Thohir has commissioned McKinsey and Boston Consulting Group to recommend an overhaul of the state-owned sector that would marry up struggling companies with healthier ones, improve skills, and scout opportunities in advanced technology fields like big data and artificial intelligence. PHOTO: EPA-EFE
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It is not business as usual for Indonesia's Minister of State-owned Enterprises Erick Thohir.

He has decided to close scores of subsidiaries of state-owned enterprises (SOEs) and expand hiring of well-regarded managers to boost governance after a series of scandals undermined confidence in a sector worth a quarter of the country's economy.

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A version of this article appeared in the print edition of The Straits Times on March 11, 2020, with the headline Indonesia's state-owned firms face big overhaul. Subscribe