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BRG Monthly Insights December 2023
Strategic Role of State-Owned Enterprises (BUMN) in National Economic Recovery
The December 2023 edition of BRG Monthly Insights discusses the crucial role of various clusters of State-Owned Enterprises (BUMN) in accelerating national economic recovery post-COVID-19 pandemic. Amid increasing global uncertainties due to geopolitical tensions and the energy crisis, Indonesia has demonstrated strong economic resilience, significantly supported by the performance of BUMN across various sectors.
Performance Growth of BUMN Clusters
In 2022, the total assets of BUMN reached IDR 9,789 trillion. The Financial Services and Energy, Oil, and Gas clusters emerged as dominant contributors, with asset contributions of 48.1% and 27.5%, respectively. The Energy, Oil, and Gas sector recorded the highest revenue, approximately IDR 1,642 trillion, or 56.3% of the total BUMN revenue of IDR 2,916 trillion, highlighting the sector's dominance in Indonesia's BUMN economic structure.
Sustainable Energy Transformation
BUMN in the energy sector faces significant challenges in transitioning to renewable energy. The global trend towards clean and sustainable energy has become a major issue, with the growth of renewable energy (especially solar and wind) increasingly dominating. Energy BUMN are expected to adjust their investments towards renewable energy as a strategic step for the future.
Prospects for the Mineral and Coal Sector
The Mineral and Coal cluster has shown positive performance, particularly driven by increased demand for strategic minerals such as nickel for electric vehicle batteries. Although coal faces challenges due to environmental issues, its prices have surged due to the global energy crisis triggered by the Russia-Ukraine conflict. BUMN in this cluster are expected to adapt through downstream strategies and carbon capture technologies.
Tourism Recovery Post-Pandemic
The Tourism and Supporting cluster has shown significant recovery after the severe impacts of the COVID-19 pandemic, with a sharp increase in domestic and international tourist visits and an uptick in foreign exchange earnings. However, this sector must adapt to value-based and sustainable tourism trends.
Digitalization in Telecommunications and Media
The digital transformation led by the Telecommunications and Media cluster continues to show progress, driven by the adoption of AI technology and Over-The-Top (OTT) platforms. This opens up significant opportunities for BUMN to enhance revenue and create added value in services for consumers.