Hanif Musyaffa, Alfida Rizky Febrianna, Jakarta – Erick Thohir has been officially sworn in as youth and sports minister (Menpora), replacing Dito Ariotedjo, marking his departure from the post of state-owned enterprises (SOEs) minister. The reshuffle has sparked debate, particularly as it leaves the SOEs Ministry seat vacant.

The government has denied plans to merge the SOEs Ministry into Danantara, Indonesia's sovereign wealth fund, despite speculation following the reshuffle. State Secretary Prasetyo Hadi said such a move was "not being considered for now," though the option remains on the table. In a brief statement, Erick also sidestepped questions about whether the ministry would be folded into Danantara, simply saying: "I don't know about that."

The reshuffle puts the SOEs Ministry in limbo at a time when nearly all state firms are already under Danantara's command. Since its establishment, the sovereign wealth fund has taken a decisive role, including scrapping commissioner bonuses and planning a merger between flag carrier Garuda Indonesia and Pertamina's aviation arm, Pelita Air.

Economists say this shift raises a bigger question: Does Indonesia still need an SOEs Ministry? National Banking Association (Perbanas) economist Aviliani argued the ministry has lost relevance, with Danantara now managing most state-run companies.

"If the government envisions Danantara as Indonesia's version of Singapore's Temasek, then all SOE operations should be centralized under one entity. If even public service agencies will eventually be folded into Danantara, then what is left for the ministry? It would be better to dissolve it," Aviliani said.

Rian Kiryanto, associate faculty member at the Indonesian Banking Development Institute (LPPI), offered a different view. He said the appointment of a new SOEs minister remains the president's prerogative and should aim to strengthen collaboration with Danantara.

"Danantara already runs most SOEs. The new minister's job will be to act as a strong tandem, ensuring synergy without disrupting the system or rhythm of SOEs going forward," Rian said.

While overlaps remain, since the SOEs minister and deputies also sit on Danantara's board, Rian argued this should be seen as an advantage. "Rather than a source of friction, this can accelerate government programs mandated to Danantara. The key is for the SOEs Ministry to move quickly and in sync," he added.

Source: https://jakartaglobe.id/business/soes-ministry-no-longer-relevant-after-danantara-economist-say