Download or read book Unlocking the Economic and Social Value of Indonesia s State Owned Enterprises written by Asian Development Bank and published by Asian Development Bank. This book was released on 2022-12-01 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report provides an analysis of Indonesia's state-owned enterprises (SOEs), explores their prominent economic and social role, and explains how further reforms can unlock their commercial and developmental potential. Acting as a diagnostic to help inform the government's SOE reform agenda, the report emphasizes the need to strengthen governance and refine incentives. Explaining how SOEs have the potential to help solve core challenges around building infrastructure or tackling climate change, it shows how strengthening SOEs through targeted measures can ensure they better support Indonesia's pandemic recovery and drive stronger economic growth.
Download or read book Are State owned Enterprises Successful Vehicles for Attaining Their Government Objectives written by Andriati Fitriningrum and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this study is to examine whether Indonesian Badan Usaha Milik Negara (BUMN) or State-Owned Enterprises (SOE) are successful vehicles for attaining government socio-economic and financial objectives. The motives for undertaking this study arise from the importance of SOEs in national economic and socio-political roles in developing countries like Indonesia, even after their privatisation. This thesis identifies the implications of policy changes for the Indonesian government's objectives for SOEs. First, an historical examination of changes in the institutional and economic environment in Indonesia (Chapters 6-8) identifies substantial impacts on the evolution of the structure of SOEs and the government's objectives for SOEs. The first stage of this analysis reveals that the "see-sawing" of economic policy between centralisation and market orientation led to changes in the structure and objectives of the SOEs. Initially, the state enterprises established during the Indonesianisation period (1945-1958) had multiple socio-political objectives with little concern for economic of financial objectives. The reforms during the nationalisation period (1958-1966) included the restructuring of previously nationalised companies as Perusahaan Negara, and the introduction of profit objectives for some Perusahaan Negara. In the corporatisation period (1966 - present), the Perusahaan Negara were reformed and divided into three types of entities: Persero, Perum and Perjan. The Persero are incorporated entities that have both commercial and social welfare objectives. The Perum are incorporated entities that are not commercial but have profit objectives and social welfare objectives. The Perjan are not incorporated (remaining as state agencies) and have only social welfare objectives. Perusahaan Negara poor performance and fiscal problem in the early 1980s encouraged the reform of Perusahaan Negara structure as Badan Usaha Milik Negara (BUMN/SOE). The introduction of partial-privatisation policy in 1991 encouraged profit and efficiency objectives for SOEs that could potentially be privatised. The implementation of fast track privatisation in 2002 caused significant changes in the SOEs structure and objectives. The government encouraged all SOEs to implement corporatisation principles in which emphasise financial objectives such as profit and efficiency. The government eliminated the Perjan structure, which it considered to have become a barrier to the implementation of full corporatisation and fast track privatisation. In practice, social welfare and non-economic remained a major Badan Usaha Milik Negara (BUMN/SOE) objectives. From the late 1990s, external pressure from international financial institutions was a significant factor in the government's efforts to privatise the SOEs. In the second part of the historical analysis in this thesis, privatisation is shown to be a major influence on policies and SOEs' objectives. Privatisation represents a fundamental change in the government-stated objectives and policies for SOEs, and included the introduction of an 'open market' policy, development of domestic capital market activities, and full implementation of corporatisation principles. However, privatisation in Indonesia is constrained by the 1945 Constitution of Indonesia regarding the control policy, which leads to different categories of SOEs with respect to privatisation and the importance of economic or financial objectives. There are now three categories of SOEs: those that have been identified as not available for privatisation, those that can be privatised but are still fully owned by the government, and those that have been privatised. As a consequence of the constitutional barrier and political interests, most privatisations of SOEs were partial. The continuation of government control over these partially privatised SOEs increased the potential for conflict between the greater emphasis on financial objectives arising from private investors and the government's continuing socio-political objectives for these SOEs. This is emphasised in analysis of the most intensive period of privatisation (2002-2004). An examination of SOEs objectives in practices shows that privatisation policy makes some differences in regards to the government objectives and treatment for the SOEs. In addition to three different categories of SOEs, privatisation policy encourages the importance of profit and efficiency objectives which apply to all SOEs. In contrast, the content analysis (Chapters 8-9) reveals that the government inconsistency in implementing the new profit and efficiency policies and caused the absence of profit and efficiency objectives as part of the government objectives for numbers of SOE. The potential conflicting objectives arises between the government and SOEs when the SOEs have to deal with the pressure and changes from their markets. Building on the conceptually conflicting objectives identified in the historical analysis, the thesis then empirically assesses the extent of apparent conflicts within government objectives, and between the government's and SOEs objectives, and the implication on the performance of SOEs with respect to government objectives. First, the extent of apparent conflicts emerges as the government introduces profit and efficiency objectives, while in practice; the government has never made any changes in the government-stated objectives for each individual SOE. Second, the company constitution and management objectives are more likely to make changes of the objectives in order to accommodate the changes in their market. Next, identifies the objectives for which objective (proxy) performance measures are available: these are financial performance and financial performance that represent the social welfare. Using these measures, the different types of performance of SOE's are regressed against indicators of government-stated objectives for SOEs, whether the objectives make a different or affect the SOEs performance. Examination of the relations between the government-stated objectives and SOEs financial performance shows some weak negative relations between the government-stated objectives and SOEs financial performance. The reliance of many Indonesian SOEs on non-core business income (such as subsidies and asset disposals) and external financial support (such as soft loans from government-controlled lenders) indicates the inconsistency between the SOEs financial objectives and achieving the government's social welfare and non-economic objectives.
Download or read book The Evolution and Management of State Owned Enterprises written by Yair Aharoni and published by Cambridge, Mass. : Ballinger Pub.. This book was released on 1986 with total page 502 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Indonesia Inc written by Tanri Abeng and published by Cavendish Square Publishing. This book was released on 2001 with total page 238 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is the authors account of the challenges facing this businessman in the bureaucracy as he tries to make economic sense of the vast, and money-losing State-Owned Enterprises (SOE's) in Indonesia. His mission: to reform and provatise the SOEs in order to take pressure off the national buedget, attract investment, improve management skills, and change a vureaucratic culture for a commercial one focused on competition. The book covers an 18 month period, from March 1997 to the end of 1998, a period when Indonesia's economy was in crisis and the country's edconomic policies were being overhauled. The author recounts his experiences and lessons learnt which provides a model and method for others in simolar situations.
Download or read book Business and Social Efficiency of the Indonesian State owned Enterprises written by Irwanda Wisnu Wardhana and published by . This book was released on 2016 with total page 102 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research aims to examine the relationships of government ownership, social efficiency and business efficiency of the Indonesian State-Owned Enterprises (SOEs). It employs two research hypotheses: firms with higher government ownership are more likely to have higher social efficiency and firms with higher social efficiency are more likely to have lower business efficiency. The SOEs are divided into three categories based on types of government ownership: Perum, Persero, and Listed Persero. The dataset consists of 126 SOEs operating in six industrial sectors in a ten years observation period (2004-2013). The study employs data envelopment analysis (DEA), analysis of variance, and panel regressions. The Social Efficiency model focuses on job creation ability over revenue, whereas the Business Efficiency model centers on revenue generation capacity over total assets. We reject the first hypothesis that government ownership has influence on both social and business efficiency; however, we fail to reject the second hypothesis that social efficiency has significant and negative relationships with business efficiency. The research provides evidence that social efficiency measurement will be useful in improving the performance of SOEs that have two mission objectives: social and business.
Download or read book Performance of State Owned Enterprises in Indonesia and Malaysia written by Citra Sukmadilaga and published by . This book was released on 2017 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: Objective - The purpose of this research is to measure performance of State-owned Enterprises that listed in Bursa Malaysia and Indonesian Stock Exchange.Methodology/Technique - The economic performance will be measured by DEA. This study was employed technical efficiency and Malmquist Productivity Index. Period of this study was conduct from 1992 to 2007, consist of three periods: a) Pre Crisis, b) Crisis, and c) Post Crisis.Findings - For Indonesia's SOEs, the conclusion over the periods of study that the technical efficiency of SOEs improved, especially in period of Crisis, when government injected direct subsidies in order to enable SOEs maintain their performances. Meanwhile, the result for Malaysia's SOEs sample demonstrates that over the periods of study, technical efficiency of SOEs was also improved. The improvement from Pre-crisis to Crisis period was not only due to some enterprises having early recovery compared to others but also government supported SOEs during crisis, by getting lower investment and export financing cost and purchasing and sales preference.Novelty - There is lack of studies on State-owned Enterprises productivity in this region, so this study can fill this research gap and provide a useful reference to policy makers and users.Type of Paper: Empirical.
Download or read book Making It Big written by Andrea Ciani and published by World Bank Publications. This book was released on 2020-10-08 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic and social progress requires a diverse ecosystem of firms that play complementary roles. Making It Big: Why Developing Countries Need More Large Firms constitutes one of the most up-to-date assessments of how large firms are created in low- and middle-income countries and their role in development. It argues that large firms advance a range of development objectives in ways that other firms do not: large firms are more likely to innovate, export, and offer training and are more likely to adopt international standards of quality, among other contributions. Their particularities are closely associated with productivity advantages and translate into improved outcomes not only for their owners but also for their workers and for smaller enterprises in their value chains. The challenge for economic development, however, is that production does not reach economic scale in low- and middle-income countries. Why are large firms scarcer in developing countries? Drawing on a rare set of data from public and private sources, as well as proprietary data from the International Finance Corporation and case studies, this book shows that large firms are often born large—or with the attributes of largeness. In other words, what is distinct about them is often in place from day one of their operations. To fill the “missing top†? of the firm-size distribution with additional large firms, governments should support the creation of such firms by opening markets to greater competition. In low-income countries, this objective can be achieved through simple policy reorientation, such as breaking oligopolies, removing unnecessary restrictions to international trade and investment, and establishing strong rules to prevent the abuse of market power. Governments should also strive to ensure that private actors have the skills, technology, intelligence, infrastructure, and finance they need to create large ventures. Additionally, they should actively work to spread the benefits from production at scale across the largest possible number of market participants. This book seeks to bring frontier thinking and evidence on the role and origins of large firms to a wide range of readers, including academics, development practitioners and policy makers.
Download or read book The Impact of Government Support on the Performance of Indonesia s State owned Enterprises written by Hendro Nugroho and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study analyzes the impact of government support on the financial performance of Indonesia's state-owned enterprises (SOEs). I employ the ordinary least square (OLS) method with firm and year fixed effects in addition to clustered standard errors. The findings show that government support for SOEs does not have a significant effect on their financial performance. This study finds that the government should examine its investment policy to support SOEs and consider designing a proper government support policy to generate higher SOE financial performance.
Download or read book Making Of An Economic Superpower The Unlocking China s Secret Of Rapid Industrialization written by Yi Wen and published by World Scientific. This book was released on 2016-05-13 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt: The rise of China is no doubt one of the most important events in world economic history since the Industrial Revolution. Mainstream economics, especially the institutional theory of economic development based on a dichotomy of extractive vs. inclusive political institutions, is highly inadequate in explaining China's rise. This book argues that only a radical reinterpretation of the history of the Industrial Revolution and the rise of the West (as incorrectly portrayed by the institutional theory) can fully explain China's growth miracle and why the determined rise of China is unstoppable despite its current 'backward' financial system and political institutions. Conversely, China's spectacular and rapid transformation from an impoverished agrarian society to a formidable industrial superpower sheds considerable light on the fundamental shortcomings of the institutional theory and mainstream 'blackboard' economic models, and provides more-accurate reevaluations of historical episodes such as Africa's enduring poverty trap despite radical political and economic reforms, Latin America's lost decades and frequent debt crises, 19th century Europe's great escape from the Malthusian trap, and the Industrial Revolution itself.
Download or read book State Owned Enterprises in Emerging Europe The Good the Bad and the Ugly written by Uwe Böwer and published by International Monetary Fund. This book was released on 2017-10-30 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: State-owned enterprises (SOEs) play an important role in Emerging Europe’s economies, notably in the energy and transport sectors. Based on a new firm-level dataset, this paper reviews the SOE landscape, assesses SOE performance across countries and vis-à-vis private firms, and evaluates recent SOE governance reform experience in 11 Emerging European countries, as well as Sweden as a benchmark. Profitability and efficiency of resource allocation of SOEs lag those of private firms in most sectors, with substantial cross-country variation. Poor SOE performance raises three main risks: large and risky contingent liabilities could stretch public finances; sizeable state ownership of banks coupled with poor governance could threaten financial stability; and negative productivity spillovers could affect the economy at large. SOE governance frameworks are partly weak and should be strengthened along three lines: fleshing out a consistent ownership policy; giving teeth to financial oversight; and making SOE boards more professional.
Download or read book Governance and State Owned Enterprises How Costly is Corruption written by Ms.Anja Baum and published by International Monetary Fund. This book was released on 2019-11-22 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: State-owned enterprises (SOEs) are present in key sectors of the economies around the world. While they can provide an important public service, there is widespread concern that their activities are negatively affected by corruption. However, there is limited cross-country analysis on the costs of corruption for SOEs. We present new evidence on how corruption affects the performance of SOEs using firm level data across a large number of countries. One striking result is that SOEs perform as well as private firms in core sectors when corruption is low. Taking advantage of a novel database reforms, we also show that SOE governance reforms can generate significant performance gains.
Download or read book Unlocking Indonesia s Geothermal Potential written by Asian Development Bank and published by . This book was released on 2015-04 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt: Geothermal energy represents one of the key options for Indonesia to achieve a comprehensive approach to national energy development. The rapid increase in fossil-fuel based energy consumption, which is subject to volatility in the world oil market, is the main challenge facing the country's energy supply. This study documents key issues that have constrained the development of geothermal power in Indonesia, including tariffs, tendering processes, financial considerations, permitting, and interagency coordination. It also makes recommendations to unlock the potential of the sector, including a new tariff regime, improvements to the tendering process, renegotiation of power purchase agreements, and innovative modes of financing.
Download or read book Unlocking SME Finance in Asia written by Naoyuki Yoshino and published by Routledge. This book was released on 2019-07-01 with total page 354 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is limited access for small and medium-sized enterprises (SMEs) to bank credit. This book proposes new and sustainable models to help ease the access of SMEs to finance and boost economic growth and job creation in Asia. This book looks at the difficulties of SMEs in accessing finance and suggests ways on how to mitigate these challenges. It suggests how we can develop credit information infrastructures for SMEs to remedy the asymmetric information problem and to utilize credit rating techniques for the development of a sustainable credit guarantee scheme. The book provides illustrations of various Asian economies that implemented credit guarantee schemes and credit risk databases and is a useful reference for lessons and policy recommendations.
Download or read book The Rise and Fall of State Owned Enterprise in the Western World written by Pierangelo Maria Toninelli and published by Cambridge University Press. This book was released on 2000-10-02 with total page 342 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines the twentieth-century rise and fall of state-owned enterprises in Western political economy.
Download or read book Resource Misallocation Among Listed Firms in China The Evolving Role of State Owned Enterprises written by Ms. Emilia M Jurzyk and published by International Monetary Fund. This book was released on 2021-03-12 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: We document that publicly listed Chinese state-owned enterprises (SOEs) are less productive and profitable than publicly listed firms in which the state has no ownership stake. In particular, Chinese listed SOEs are more capital intensive and have a lower average product of capital than non-SOEs. These productivity differences increased between 2002 and 2009, and remain sizeable in 2019. Using a heterogeneous firm model of resource misallocation, we find that there are large potential productivity gains from reforms which could equalize the marginal products of listed SOEs and listed non-SOEs.
Download or read book Myanmar written by Asian Development Bank and published by Asian Development Bank. This book was released on 2014-08-01 with total page 405 pages. Available in PDF, EPUB and Kindle. Book excerpt: After 3 years of historic reforms, Myanmar has entered a pivotal stage in its socioeconomic development. Natural, cultural, and demographic advantages are positioning the country for long-term success, but many challenges and potential pitfalls lie ahead. This publication examines how to leverage the opportunities and offers solutions to the challenges. For Myanmar to achieve its economic transition, considerable investments will have to be made in infrastructure and developing human capital, and progress made on building institutional capacity, a regulatory environment for the private sector to flourish, and a modern finance sector. In all reform efforts, the government should embrace good governance, and strive for inclusive, environmentally sustainable, and regionally connected growth. Ensuring that the benefits of growth are shared broadly and regionally balanced stands out in a crowded development agenda.
Download or read book Innovate Indonesia written by Asian Development Bank and published by Asian Development Bank. This book was released on 2020-03-01 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt: New technologies present governments with opportunities and challenges in a range of key policy areas such as employment, competitiveness, equity, and sustainability. A consensus is that the national government can play an important role in stimulating innovation. This report explores policy options to facilitate Indonesia's technological transformation and unlock its economic growth potential.
