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Using partially state-owned enterprises for development in Indonesia

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  • Kyunghoon Kim

Abstract

The Indonesian government, under Joko Widodo, has begun to actively use partially state-owned enterprises (PSOEs) to achieve its development goals. This government has pursued its plans despite minority shareholders’ dissatisfaction with the shift in PSOEs’ corporate goals towards national development objectives. This paper investigates the state’s influence on PSOEs by analysing the government’s direct and indirect ownership, control of corporate governance and financial systems, and inter-firm relations. The paper demonstrates that the business system, under the government’s strong influence, has enabled Indonesian PSOEs to focus on carrying out development projects and shielded PSOEs from minority shareholders’ demands.

Suggested Citation

  • Kyunghoon Kim, 2019. "Using partially state-owned enterprises for development in Indonesia," Asia Pacific Business Review, Taylor & Francis Journals, vol. 25(3), pages 317-337, May.
    • Handle: RePEc:taf:apbizr:v:25:y:2019:i:3:p:317-337
    DOI: 10.1080/13602381.2019.1575660
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    References listed on IDEAS

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    1. Kurlantzick, Joshua, 2016. "State Capitalism: How the Return of Statism is Transforming the World," OUP Catalogue, Oxford University Press, number 9780199385706.
    2. World Bank, 2013. "Indonesia Economic Quarterly, March 2013 : Pressures Mounting," World Bank Publications - Reports 16614, The World Bank Group.
    3. World Bank, 2013. "Indonesia Economic Quarterly, July 2013 : Adjusting to Pressures," World Bank Publications - Reports 16613, The World Bank Group.
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