JakartaPost-Oct 19

President Joko “Jokowi” Widodo said state-owned enterprises (SOEs) should no longer be shielded by the government, as it makes them feel too comfortable within their respective industries. Injecting state capital into ailing SOEs is one of the practices Jokowi appears keen to dispense with, having said previously that the government had afforded SOEs such treatment too often. He said he believed that doing so meant that many SOEs lacked courage to compete and reluctant to take risks. SOEs, he said, should adapt their business models to current trends like Industry 4.0, technological disruption and the pandemic, he added. “So, no more protection [for SOEs]. That’s it. Forget protection,” Jokowi said in an address to SOE directors during a visit to East Nusa Tenggara on Thursday. Meanwhile, Center of Economics and Law Studies (CELIOS) director Bhima Yudhistira told the Post on Monday that the idea of rescinding protection could be good for businesses as a whole, if the government could pull it off. He argued that government protection in some areas had resulted in unhealthy competition that limited private-sector potential. Read more at: https://www.thejakartapost.com/news/2021/10/18/forget-protection-jokowi-tells-soes-to-get-out-of-their-comfort-zone.html.