Page 189 - SUSTAINABILITY ISSUES & COVID-19

29 The Sustainability of Indonesian
State-Owned Enterprises

Surifah

ABSTRACT

The performance of Indonesian state-owned enterprises (SOEs) in the past years continues to be in the spotlight. Big
cases such as the case of PT Garuda Indonesia, PT Jiwasraya, the case of PLN which lost 53 trillion in the first quarter of
2020, the case of Pertamina lost 11 trillion as of 30 June 2020, and several SOEs that lost raises questions about how
the SOEs is sustainable. The purpose of this research is to assess the sustainability of Indonesian SOEs, by 1) assessing
the financial performance of Indonesian SOEs, 2) assessing the fluctuation of debt and equity of SOEs and non-SOEs, 3)
comparing the financial performance of SOEs versus non SOEs in similar industries, and 4 ) comparing the “sustainability
report” between SOEs versus Non- SOEs.

The research sample is all state-owned enterprises that go public in IDX and similar non-state-owned companies. Data
were taken from financial reports and annual reports available on IDX and on the Web of each company from 2013 to
2019. The method of analysis used quantitative descriptive, namely analyzing and describing the available quantitative
data. The method for comparing the financial performance and sustainability report of SOEs uses different t-test and
the Man Whitney U test. T he sustainability of SOEs is mainly evaluated based on aspects of financial performance,
namely the fluctuation of the debt and equity ratio. Financial performance is measured by debt to total assets ratio
(DAR), equity to total assets ratio (EAR), return on assets (ROA), and return on equity (ROE). Sustainability Report (SR)
is measured using dummy variables, one if there is an SR, and zero if there is no SR. This research is important because
many SOEs are engaged in strategic sectors related to the livelihoods of many people and are one of the means to
achieve Indonesia’s economic sovereignty.

Keywords
Sustainability, SOEs, Financial Performance

1. INTRODUCTION

This research was motivated by the concerns of many parties related to the performance of Indonesian SOEs. Major
cases such as the case of PT Garuda Indonesia 2018, PT Jiwasraya 2019, the PLN case which lost 53 trillion in the first
quarter of 2020, the Pertamina loss case of 11 trillion as of June 30, 2020, and several SOEs that lost raises questions
about how the sustainability of Indonesian SOEs. Pertamina’s performance in the last 10 years has always posted a
profit. At the end of 2019 Pertamina’s profit reached IDR 35.8 trillion, but why was it losing money in mid-2020? The
main commissioner of Basuki Tjahaja Purnama (Ahok) on June 27, 2020, said that Pertamina is managed by braking, it is
profitable, but supervised (Tempo.co, 2020). But when he took office he even lost. This controversial matter makes the
public wonder what is going on with Indonesian SOEs.

Apart from the big cases of state-owned enterprises such as Garuda Indonesia, Jiwasraya, PLN, and Pertamina, several
state-owned companies that lost money included PT Dok and Shipping Kodja Bahari, PT Sang Hyang Seri, PT PAL
Indonesia, PT Dirgantara Indonesia, PT Pertani, PT Perum Bulog, PT Krakatau Steel Tbk (CNBC.Indonesia, 2020). The
following will provide an overview of 3 SOEs that have suffered losses. First, PT DOK and Perkapalan were founded 30
years ago as a result of the merger of four shipbuilding companies. The company has a shipyard operating in Cilincing,
North Jakarta, and five branches in Batam, Palembang, Cirebon, Semarang, and Banjarmasin. Based on the financial
statements at the end of 2016, the company’s total assets were recorded at IDR 2.02 trillion, equity value minus IDR
1.48 trillion, suffered a loss of IDR 130 billion with a revenue value of IDR 367 billion. Second, PT Sang Hyang Seri
is engaged in hatchery business in the agricultural sector including seeds for plantation, livestock, and export of
produced seedlings. At the end of 2016, Sang Hyang Seri recorded a loss of IDR 62 billion with total revenue of IDR
355 billion. The company’s asset value at the end of 2016 was IDR 860 billion and the equity value was minus IDR 1.19
trillion. Third, PT PAL Indonesia is the largest ship-producing company in Indonesia, including in the field of repair and

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