Global Acknowledgment: OECD Praises Indonesian SOE Reforms Under Erick Thohir

INDONESIA, RAKYAT NEWS – The Minister of State-Owned Enterprises (SOEs), Erick Thohir, announced that the Organization for Economic Cooperation and Development (OECD) has acknowledged the governance of Indonesia’s state-owned enterprises as competitive and on par with the private sector.

The Organisation for Economic Co-operation and Development (OECD) is an international organization founded in 1961.

It currently consists of 38 member countries, including many of the world’s most advanced and emerging economies.

The OECD’s mission is to promote policies that will improve the economic and social well-being of people around the world.

He emphasized that the simplification and restructuring of the Ministry of SOEs regulations are crucial to adapting to global changes while maintaining a solid legal foundation. This ensures that the business operations of SOEs remain relevant and adhere to prudent principles.

“I hope this breakthrough can serve as a guide in facing globalization. We must avoid being trapped in recurring issues and be able to anticipate rapid changes by making prudent policies and decisions,” Thohir stated

This recognition is partly due to Thohir’s “less bureaucracy” program, initiated in 2020. One significant move was the consolidation of Ministry of SOEs regulations from 45 to just three in 2022.

The OECD report on Product Market Regulations (PMR) highlights that the governance of Indonesian SOEs is now aligned with OECD member countries. This indicates that the Ministry of SOEs is on the right track in regulatory transformation.

The restructuring and simplification of regulations adhere to Law No. 13 of 2022, which amends Law No. 12 of 2011 on Legislative Drafting. The new law incorporates the omnibus method and enhances meaningful public participation in legislative processes.