The Existence of State-Owned Enterprises (SOEs): A Case on Nusantara Bonded Zone of Indonesia

Abstract

The number of state-owned enterprises in Indonesia has tended to decline in the last five years due to restructuring by cutting the number of state-owned enterprises. The restructuring was caused by two factors, namely the existence of SOEs that suffered losses and to focus the government's capital participation on SOEs that still existed. This study aims to analyze the existence of PT. Nusantara Bonded Zone as one of the SOEs in Indonesia. The analysis can be seen from the aspects of regulation, budget, and management. This research uses a qualitative approach with a descriptive type of research. Data obtained from interviews with parties who have the capacity to manage PT. Nusantara Bonded Zone. Therefore, the technique of determining informants in this study was purposive sampling. The results showed that the existence of PT. Nusantara Bonded Zone can exist as a SOES in Indonesia by implementing Good Corporate Governance in management aspects, sustainable government funding to improve its financial performance, as well as regulations that accommodate its flexibility as a business entity.