A Comprehensive Research on Indonesian State-owned Enterprises: Strategies, Privatization, Strategic Leadership, Governance, and Performance.
(B. Ekonomi)
A Comprehensive Research on Indonesian State-owned Enterprises: Strategies, Privatization,
Strategic Leadership, Governance, and Performance
Prabowo, Muhammad Agung; Untoro, Wisnu; Trinugroho, Irwan
Fakultas Ekonomi UNS, Penelitian, BOPTN UNS, Hibah Fundamental, 2012
In the first year, this study focuses on the efficiency and performance of SOEs compared to their privateowned counterparts. We have three empirical researches for the first years. Firstly, we analyze the
efficiency difference, measured by labor surplus and employee productivity, between partially privatized
(publicly traded) SOEs and private owned enterprises (POEs) for non-financial firms. We find that
partially privatized Indonesian SOEs have higher employee productivity than that of their private owned
counterparts. No difference of labor surplus is found between state-owned and private-owned firms.
Secondly, we examine the accounting performance difference, measured by return on investment and
profit margin, between partially privatized SOEs and POEs for non-financial firms. We interestingly find
that government ownership of firms lead to a higher accounting performance measured by the ratio of
return on assets and the profit margin ratio.
Thirdly, we investigate the policy burdens that could be considered as a source of firm inefficiency,
measured by employee burden (wage surplus) and small scale loans burden, of Indonesian regional
government banks or regional development banks as a form of state owned enterprises as well. We find
that regional government banks have more employee burden and small scale loans burden than other
banks. Furthermore, we document that excessive employees in the regional development banks are
positively associated with the degree of poverty in their regions and negatively related to the regional
economic capacity. In the regions with high degree of poverty, those banks have to channel excessive
small scale loans.
A Comprehensive Research on Indonesian State-owned Enterprises: Strategies, Privatization,
Strategic Leadership, Governance, and Performance
Prabowo, Muhammad Agung; Untoro, Wisnu; Trinugroho, Irwan
Fakultas Ekonomi UNS, Penelitian, BOPTN UNS, Hibah Fundamental, 2012
In the first year, this study focuses on the efficiency and performance of SOEs compared to their privateowned counterparts. We have three empirical researches for the first years. Firstly, we analyze the
efficiency difference, measured by labor surplus and employee productivity, between partially privatized
(publicly traded) SOEs and private owned enterprises (POEs) for non-financial firms. We find that
partially privatized Indonesian SOEs have higher employee productivity than that of their private owned
counterparts. No difference of labor surplus is found between state-owned and private-owned firms.
Secondly, we examine the accounting performance difference, measured by return on investment and
profit margin, between partially privatized SOEs and POEs for non-financial firms. We interestingly find
that government ownership of firms lead to a higher accounting performance measured by the ratio of
return on assets and the profit margin ratio.
Thirdly, we investigate the policy burdens that could be considered as a source of firm inefficiency,
measured by employee burden (wage surplus) and small scale loans burden, of Indonesian regional
government banks or regional development banks as a form of state owned enterprises as well. We find
that regional government banks have more employee burden and small scale loans burden than other
banks. Furthermore, we document that excessive employees in the regional development banks are
positively associated with the degree of poverty in their regions and negatively related to the regional
economic capacity. In the regions with high degree of poverty, those banks have to channel excessive
small scale loans.