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State-owned enterprises (SOEs) play significant roles in developing economies in Asia and SOE performance remains crucial for economy-wide productivity and growth. This book looks at SOEs in Azerbaijan, Indonesia, Kazakhstan, the People’s Republic of China, and Viet Nam, which together present a panoramic view of SOEs in the region. It also present...
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... In addition to commercial objectives, state owners also pursue social and political objectives (Aguilera et al., 2021). A state-owned enterprise (SOE) is any commercial entity in which the government has significant control through direct and indirect ownership (Ginting & Naqvi, 2020). SOEs are diverse, varying in size, sector of operation, complexity, sophistication, and extent of government ownership and control (IMF, 2020). ...
Purpose: This study examined the relationship between corporate governance attributes and performance of state-owned enterprises through review of literature. The study specifically sought to establish the relationship between corporate governance attributes of accountability, transparency, transformational leadership and stakeholder engagement; and performance of state-owned enterprises with government policy objective as the mediating variable. The study was anchored on Agency, Signalling, Transformational Leadership and Stakeholder Theories to narrow the literature gap. Methodology: The study adopted desk research design through reviewing of relevant literature relating to corporate governance attributes and performance of state-owned enterprises. The study also summarized major contributions of significant studies on the relationship between corporate governance and performance. In addition, the study discussed the theoretical and methodological gaps in the reviewed literature on corporate governance and performance for further research. Findings: Reviewed primary and secondary literature sources showed that, more transparency allows for greater accountability and contributes to better performance by state-owned enterprises. Further, countries that have been able to improve their corporate governance standards and practices have also been able to improve the business environment for and performance of both private and state-owned companies. In addition, SOEs’ performance is influenced by adoption and implementation of corporate governance practices. However, the difference in financial performance of SOEs may be due to several factors including set government policy objectives that constrain the performance of the SOEs. Moreover, countries with ineffective governance and low accountability continue to experience weak SOE performance, poor delivery of public services, stifled competitiveness and growth including through the crowding-out of private companies and increased opportunities for political patronage and corruption. Unique contribution to theory, practice and policy: The study recommended that the principal objective of SOE reforms should be to improve SOEs’ accountability and efficiency by establishing and enforcing adequate reporting of their performance while holding them accountable for reaching or their targets. In addition, the state ownership policy should fully recognize SOE’s responsibilities towards stakeholders and request that SOEs report on their relations with stakeholders. Further, it should make clear any expectations the state has in respect of responsible business conduct by SOE.
... Similarly, [3] said that the restricted budget is being worsened as the demand for high-performance and high-quality public services grows. According to [8], one method to improve service delivery is to emphasize public asset management. Also [9], confirm that enhanced asset management has resulted in better service delivery in the United Kingdom as a result of the modernisation of the public sector under the New Public Management (NPM). ...
The Indonesian government's attention to economic infrastructure development has increased over the last two decades. However, there has been a trend of rampant rent-seeking in infrastructure projects by elites in both local and central governments. Nonetheless, why and how rent-seeking practices in infrastructure projects have been so endemic in Indonesian local government remains poorly understood. This article addresses this by investigating how infrastructure development in local government serves dual functions of economic growth and political commodity by utilising qualitative data obtained from interviews in Central Kalimantan (2016) and East Nusa Tenggara (2020) provinces. This data confirms the existence of infrastructure's dual function, in which official regional development planning documents and accompanying regulations are more likely to function as a legal umbrella for legalising rent-seeking practices. The term ‘unjust by default‘ identifies the practice of rent-seeking by formalising political-economic interests into regional development planning documents and manipulating regulations in order to implement infrastructure development programmes.
Bu çalışma son yıllarda dünyada yükselme eğilimine giren iktisadi devletçiliğin etkilerini araştırmaktadır. Devletçi uygulamalarla çok eski dönemlerden beri karşılaşılmaktadır, ancak son iki-üç yüzyıl boyunca, devletçiliğin kapsamı sürekli genişleme eğilimindedir. İkinci Dünya Savaşından sonra artan refah devleti uygulamaları devletçiliğin kapsamını büyütmüştür. 1980’lerden sonra yaşanan liberalizasyon sürecine rağmen, devletçilik güçlü kalmaya devam etmiştir. Son dönemlerde hem kamu harcamalarının GSYH’ye oranının artması itibariyle hem de kamu iktisadi teşekküllerinin güçlenmesi yönüyle devletçiliğin yükseldiği dikkat çekmektedir. Devlet işletmeleri, özel sektörün kârlı şekilde faaliyet gösterdikleri alanlarda giderek daha fazla yer almaya başlamıştır. Devletçiliğin yükseliş sürecinde ayrıca kapsamlı bir parasal genişleme olgusu da yaşanmaktadır. Regülasyonların, teşvik ve sübvansiyonların yaygınlığı da devletçi faaliyetlerin diğer göstergeleridir. Çalışmada devletçi uygulamaların özel kesim üzerindeki yükleri artırdığı, kamu iktisadi girişimlerinin yaygınlaşması ile verimliliğin azaldığı, üretim maliyetlerinin yükseldiği, rüşvet ve yolsuzluğun yaygınlaştığı, şeffaflık ve hesap verebilirliğin azaldığı vurgulanmaktadır
Several Indonesian State-Owned Enterprises (SOEs) have had very high debts recently. Several reasons, such as government assignment projects, the impact of the Covid-19 pandemic, and corrupt management behaviour, have caused the increase in liability. There is a fierce debate among academics and legal scholars regarding whether the SOE’s debt is state debt. A state company is an independent legal entity separate from the state and obtains capital from separated state assets. Besides, the state, as the majority shareholder, assigns SOEs to projects that support government programs even though they are not profitable. In addition, several SOEs often receive State Equity Participation to survive bankruptcy caused by running out of capital or large debts. This paper will analyse the country's debt status from the perspective of public finance by taking the case of Indonesia. Moreover, it will explore the theoretical and empirical aspects of SOE’s debt from a state finance point of view. This study will use doctrinal legal research to interrogate the law as it is and should be. Although this research concludes that SOEs' finances are a state financial regime, the supervision of SOEs is not Government Judgment Rules but Business Judgment Rules. SOE's debt is the responsibility of SOE as a corporate legal entity. In the case of Indonesia, the government often rescues SOEs that have failed to pay their debts through State Equity Participation and/or privatisation while maintaining most state ownership shares, for instance, Garuda Indonesia, a national airline. Finally, state accountability for SOE's debt only occurs indirectly because of the financial separation between the state and companies. The Indonesian government saved Garuda Indonesia's finances to protect national assets and continue to control vital businesses. However, the state must also reform the management of SOEs so as not to harm state finances by upholding good corporate governance and preventing fraud and corruption.
For a number of years now, the South African Airways limped from one turnaround strategy to another, with little or no success. While there is a body of knowledge on turnaround strategies, little is known about the implementation of turnaround strategies in developing economies such as South Africa and of state-owned enterprises at that. The aim of this article was to explore some constraints experienced by SAA in the implementation of its Long-Term Turnaround Strategy. Purposive sampling was used to select participants to be interviewed for this study. Data were collected primarily through semi-structured interviews from 37 participants. Using thematic analysis, the following six themes emerged from the data analysis: shareholder’s slow decision making, undercapitalisation of the airline, unstable political leadership, unhealthy board dynamics, leadership instability, and lack of management skills.
The Indonesian government conduct several strategies to enhance the SOE’s performance. However, some financial indicators show that reform program has not optimally achieved the objective to enhance the SOE performance. Therefore this paper is aimed to discuss some underlying factors that influence the SOE performance. As a result, the study found that contribution of Indonesia SOEs to economy is relatively low and stagnant. Besides that, many SOEs have not yet operated optimally. The regression result show the financial condition of the SOE is getting better when it have higher ability to generate profits and payoff debts. In addition, ability to pay off the debts is more important to maintain the financial performance of SOEs, than ability to generate profit. This study also indicate inefficiency in managing employee and policy formulation in Indonesia’s SOE.
This study presents the Job Demands-Resources (JD-R) model to investigate employees’ organizational commitment. The purpose of this study is to examine the effect of job demands and job resources on organizational commitment, as well as the mediating effect of work engagement, in the context of Indonesian state-owned enterprises. Data were gathered using a questionnaire from 115 employees of a state-owned enterprise. Partial Least Squares - Structural Equation Modeling (PLS-SEM) was performed to analyze data. Results of data analysis indicate the negative influence of job demands and positive influence of job resources on organizational commitment. Also, work engagement mediates the effect of job demands and job resources on organizational commitment. The results of this study give a contribution to both theoretical and practical viewpoints. At the theoretical level, this study contributes to the literature on organizational commitment theory and the JD-R model. From the practical viewpoint, the study findings offer insight for Indonesian state-owned enterprises management to enhance employees’ organizational commitment by considering job demands, job resources, and work engagement of employees.
State-owned enterprises supervision system in South Korea and Singapore, within the context of the debate about reforming state-owned enterprises supervision system in Poland State-owned enterprises are a part of most modern economies. Therefore, it is substantial to elaborate which model of supervision system is the most suitable for the challenges of each country. Since the 2015 there is an ongoing debate in Poland, about the shape of a stateowned enterprises supervision system. It was considered to establish a national holding company, which would perform the ownership function for Polish state-owned enterprises. An inspiration for this idea was the South Korean state-owned supervision system and the impact of the chaebols on the Korean national economy. The aim of this article it to examine Korean solutions, and to present the state-owned supervision system which function in Singapore, because in many ways it seems to be a more adequate inspiration for the needs of Polish decision-makers.
