Prabowo asks BUMN to close the hotel business, this is Erick Thohir’s reaction: Okezone Economy

JAKARTA – Minister of State-Owned Enterprises (BUMN) Erick Thohir supports the steps taken by the Minister of Defense (Menhan) and Presidential Candidate (Capres) Prabowo Subianto regarding the rationalization and privatization of state-owned companies that do not have a strategic role. This was conveyed by Prabowo at the Mandiri Investment Forum (MIF) 2024.

On that occasion, Prabowo also said that state-owned hotels were not needed. He also asked BUMN Minister Erick Thohir’s opinion on this matter.

“We don’t need a state-owned hotel. What do you think, Mr Erick? But I ask for your advice. I want to take a sensible approach, I want to get as much advice as possible from anywhere and I want the best input,” said Prabowo, Tuesday (5/3/2024).

Responding to this, Erick said Prabowo’s statement was in line with the BUMN Ministry’s 2024-2034 road map. One of them is that shareholders continue to reduce the company’s size to just 30.

“In the 2024-2034 roadmap, if possible, the number of BUMNs will be 30, which is now from 108 to 41 only this year. As Pak Prabowo said, for example, is it necessary for BUMNs to have lots of hotels,” explained Erick.

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Before he served as Minister of BUMN, Erick said that the number of BUMN hotels was very large. In fact, almost every BUMN has its own hotel.

He also began to make breakthroughs with the formation of Holding Hotel Indonesia under the auspices of PT Hotel Indonesia Natour. Erick said that the presence of state-owned hotels is an effort to transform and improve efficiency of state-owned hotels in the future.

“In the past, every BUMN had a hotel, now in my time the hotels have been consolidated into one umbrella, namely 122 hotels,” said Erick.

According to him, BUMN as one third of Indonesia’s economic power must have three important things. First, it must be a healthy corporation and provide fiscal contributions in the form of taxes, dividends, etc. Second, as a locomotive for national economic development.

“For example, making (KEK) Sanur a center for health tourism and finally the most important thing is the people’s economy where BUMN is now 92 percent, ultra micro and micro are still also BUMN,” he explained.