President Jokowi: SOEs Must Adapt to Disruption to Go Global

President Joko Widodo delivers his directives to the CEOs of State-Owned Enterprises in West Manggarai, East Nusa Tenggara, Thursday (14/10). Photo by: BPMI of Presidential Secretariat/Laily.

State-Owned Enterprises (SOEs) must swiftly adapt to the Industry 4.0, technological disruption, and COVID-19 pandemic to be able to compete on the global stage, President Joko “Jokowi” Widodo has stated.

“The State-Owned Enterprises must go global and compete on the global stage. The State-Owned Enterprises must encourage innovation in the business model and the technology to deal with the Industry 4.0, technological disruption, and the pandemic,” the President said in his directives to the CEOs of State-Owned Enterprises in West Manggarai, East Nusa Tenggara, Thursday (14/10).

The President also ordered the SOEs to adapt to new business models, in line with technological developments, by collaborating with other global companies.

In addition, the President also reminded the SOEs to continuously review the economic valuation and the internal rate of return (IRR) indicators.

“[The IRR] must be calculated because the SOEs are owned by the Government and have significant social impacts. And most importantly, do review the economic valuation so that we will be able to forecast the future growth,” the President said.

President Jokowi went on to say that in order to be able to survive the Industry 4.0 era, a company needs to prepare its human resources and ecosystem so that they can adapt to the technological developments.

“Business transformation and technological adaptation have now become imperative,” the President remarked. (BPMI of Presidential Secretariat/HIM/UN) (RI/MUR)