Indonesian State-Owned Enterprises Research Articles

Transforming Workforce Dynamics: The Role of Remote Work Flexibility, Technological Adoption, and Employee Wellbeing on Productivity of State Owned Enterprise Employee

This study examines the impact of remote work flexibility, technological adoption, and employee wellbeing on the productivity of employees in state-owned enterprises (SOEs). In response to shifting workplace dynamics, SOEs have increasingly implemented flexible work arrangements and digital tools, prompting the need to evaluate how these factors influence employee performance. Using a quantitative research approach, data were collected from 400 employees across various SOEs in Indonesia. The analysis, conducted using multiple linear regression, revealed that technological adoption significantly enhances employee productivity, followed by remote work flexibility and employee wellbeing. Findings also highlight challenges such as digital infrastructure limitations and the need for more comprehensive wellbeing programs. The study contributes to existing literature by providing insights into how SOEs can optimize workforce productivity through flexible work policies, digital transformation, and employee wellbeing initiatives. Practical recommendations for overcoming identified barriers are discussed, offering a roadmap for SOEs to enhance employee performance in a rapidly evolving work environment.

ASSESSING THE HUMAN DIMENSION OF DIGITAL LEADERSHIP TO SUCCESSFUL DIGITAL TRANSFORMATION

All industries are experiencing significant changes due to Industry 4.0 and the upcoming Industry 5.0. These advancements will greatly impact the industry globally over the next five years. Therefore, several companies are undergoing digital transformation. Successful digital transformation relies on various factors, with leadership being crucial for setting a vision and driving change. By undertaking digital transformation, companies ensure their leaders continuously develop essential digital leadership skills. According to the assessment at PT X a state-owned enterprise in Indonesia engaged in transportation and logistics, the results indicate a gap between employees' current digital leadership competencies and the required level. This study aims to improve digital leadership competency at PT X. Objectives include identifying existing training programs, evaluating digital leadership dimensions needing improvement, and determining necessary improvements. The study uses the Digital Leadership Scale by Haroon Abbu et al. (2022), with a quantitative design involving 124 respondents. Findings show that digital leadership is part of the leadership development program, tailored to job levels from junior managers to executive presidents. The lowest scores based on assessment are in skill acquisition and courage, indicating areas for improvement. This research provides insights into digital leadership and competency improvement, crucial for successful digital transformation.

IMPLEMENTASI DAN PEMAHAMAN DOKUMEN KREDIT SALAH SATU BANK DI SURABAYA

PT Bank Negara Indonesia (Persero) Tbk or commonly abbreviated as BNI, is an Indonesian state-owned enterprise that provides various financial services. one part of finance is kredit administration, kredit administration is the process of managing and supervising the provision of kredit and monitoring payments from borrowers. in general, kredit administration includes the kredit assessment process, kredit granting decision-making, and risk management during the kredit period. The Kampus Merdeka Internship Regular Program is an activity carried out by the government from the Ministry of Education and Culture to provide space for students to gain experience in understanding the professional world and creating a professional workforce so that students are given the opportunity to help manage the Kredit administration process at.

Stakeholder Value and Firm Performance: Empirical Study of State-owned Enterprises in Indonesia

Stakeholder Value and Firm Performance: Empirical Study of State-owned Enterprises in Indonesia

Corporate Sustainability Performance in the Indonesian Fertilizer Industry: A Strategic Approach with PT Pupuk Indonesia (Persero)

This study investigates the determinants of Corporate Sustainability Performance (CSP) in PT Pupuk Indonesia (Persero), a leading state-owned enterprise in Indonesia's fertilizer industry. The research focuses on the impact of Environmental, Social, Governance (ESG), Operational, Leadership, and Strategic Transformation factors on CSP. Utilizing a Structural Equation Modeling-Partial Least Squares (SEM-PLS) approach, the study reveals that Operational Performance is the most significant driver of CSP, with Governance and Social factors also playing crucial roles. However, Environmental, Leadership, and Strategic Transformation variables show limited direct influence on CSP. These findings suggest that while operational efficiency and governance are critical for enhancing sustainability, the importance of social responsibility, visionary leadership, and long-term environmental strategies should not be underestimated. The study offers strategic insights for corporate leaders, emphasizing a balanced and comprehensive approach to achieving sustainable growth in energy-intensive industries.

Analysis of the Influence of Liquidity, Solvency, and Share Price on Company Value in Indonesian State-Owned Enterprises

Companies often seek to increase the value of the company over time, because the high value of the company reflected in the stock price will increase the wealth of shareholders. This study aims to analyze the influence of the Current Ratio, Return on Asset (ROA), and Stock Price on Company Value over ten years. The independent variables used are Current Ratio, Return on Asset, and Stock Price while the dependent variable is Company Value. These data were then analyzed using multiples of the regression method involving a statistical test t (partial), statistical test F (simultaneous), and a coefficient of determination test. The results show that the Current Ratio, Return on Asset, and Stock Price partially have a positive and significant effect on the value of the company. significant impact on the Current Ratio, Return on Asset, and Share Price has a significant effect on the company's value. The implication of this research is that understanding the factors that affect firm value can help in designing more effective policies and strategies to improve the company's financial performance and attractiveness in the eyes of investors.

A Proposed Methodology For Bridging Policy And Practice To Apply Indonesian SOE Regulations In The Balanced Scorecard Model

This research aims to develop a practical methodology to bridge policy and operational practice at PT Jakarta Industrial Estate Pulogadung (JIEP) through the implementation of a modified Balanced Scorecard (BSC) framework that aligns with Indonesian State-Owned Enterprises (SOEs) regulations. The study addresses the challenge of aligning shareholder directives with daily operations, which often struggle to translate corporate KPIs into operational KPIs. The research finds that while SOEs' administrative culture ensures regulatory compliance, there remains a need for a more structured performance management approach. By integrating goal-setting, expectancy, and control theories into the modified BSC framework, the study offers an approach that aligns regulations, corporate targets, and operational goals. The methodology used is a descriptive case study involving qualitative and quantitative data collection through internal document analysis, workshop discussions, and in-depth interviews. The data were analyzed to develop and implement a strategy map and KPIs relevant to the organization's strategic objectives. The findings show that the proposed framework effectively bridges the gap between policy and practice, ensuring that SOE regulations are not only adhered to but strategically leveraged to enhance organizational performance. By adopting this framework, JIEP and other SOEs can align unit goals with corporate and governmental strategic objectives, creating a more effective and sustainable performance management system. This research makes a significant contribution to the development of performance management systems that can be implemented in other SOEs, offering substantial improvements over existing practices.

AI and Human Collaboration: The Future of HR in the Fourth Industrial Revolution

This study investigates the interplay of Adoption of Advanced HR Technologies, Workforce Management Effectiveness, Employee Engagement and Productivity, and Employee Performance within PT Danareksa (Persero), a prominent state-owned enterprise in Indonesia's financial services sector. Using a quantitative approach and Structural Equation Modeling (SEM) with Smart PLS, data from 80 employees were analyzed to explore the direct and indirect relationships among these variables. The findings reveal significant direct effects of Adoption of Advanced HR Technologies and Workforce Management Effectiveness on Employee Engagement and Productivity, highlighting their role in enhancing employee engagement and productivity levels. Moreover, both Adoption of Advanced HR Technologies and Workforce Management Effectiveness indirectly influence Employee Performance through their impacts on Employee Engagement and Productivity. These results underscore the critical importance of strategic investments in HR technologies and effective workforce management practices in optimizing organizational performance and competitiveness. This research contributes to understanding how HR innovations and management practices can foster a conducive work environment that drives employee performance and organizational success in the financial services industry.

Business Judgment Rule and Corporate Governance as the Strategic Imperative of Indonesian State-owned Enterprise

The business judgment rule in state-owned enterprises can serve as either a protective shield or a boomerang for those involved within the mechanism of corporate governance. As such, this study aims to explore the relationship between good corporate governance and the business judgment rule principle in the context of the integrity and sustainability of directorial decisions amidst the dynamically changing context of a company’s legal responsibilities. Through a juridical normative method employing a conceptual approach, this study finds that good corporate governance cannot determine the implementation of the business judgment rule principle. This means that even though good corporate governance is significant in creating a conducive work environment for a responsible decision-making process, it cannot directly influence the implementation of the business judgment rule in cases involving state-owned enterprises.

High-Speed Railway Project of a Chinese State-Owned Enterprise in Indonesia: A Cross-Cultural Management Assessment

This study examined cross-cultural management in a diverse organization. Employees (varying in age, sex, background, etc.) disagreed on the company's cultural competence, particularly in communication, trust, and leadership. Further analysis revealed discrepancies in communication styles, values, business practices, and navigating regulations. Interestingly, age seemed to influence how employees viewed these issues. While cultural intelligence, communication, and open-mindedness on their own didn't necessarily improve specific areas, a more positive and collaborative work environment with increased trust did bridge cultural divides. Based on these findings, the study proposes a comprehensive Cross-Cultural Management Plan including diversity training, improved communication initiatives, leadership development focused on inclusivity, and activities fostering a positive workplace culture. This plan aims to address the identified challenges and create a more inclusive and successful organization.

Proposed Methodology For Indonesian State-Owned Enterprises To Conduct Corporate Spin-Off

This research addresses the absence of a formal framework for compliance with corporate spin-offs within Indonesian state-owned enterprises (SOEs). Focusing on a real issue within a state-owned aviation company, the study proposes a comprehensive methodology for SOEs to navigate spin-offs, ensuring adherence to regulatory requirements. By collecting and interpreting relevant regulations and conducting interviews where guidelines are unclear, the research establishes detailed flowcharts outlining the step-by-step procedure. The suggested solution involves following these flowcharts, considering five critical aspects, including government regulation and business law, to successfully implement spin-offs. It is important to note that the proposed methodology is specific to Indonesian state-owned enterprises and is based on government regulations as of November 2023. Users should adapt the methodology in case of regulatory amendments or new compliance-related issues. The research, however, focuses solely on the steps leading to the commencement of new entity operations and does not extend beyond this phase.

Fraud Prevention in Indonesian State-Owned Enterprises: Examining the Impact of IT-Based Auditing, Risk Management, Internal Control Systems, and Ethical Culture

Fraud Prevention in Indonesian State-Owned Enterprises: Examining the Impact of IT-Based Auditing, Risk Management, Internal Control Systems, and Ethical Culture

Exploring Knowledge Management System Success Factors: Evidence from an Indonesian State-Owned Enterprise Corporation

Exploring Knowledge Management System Success Factors: Evidence from an Indonesian State-Owned Enterprise Corporation

Corporate Governance Mechanism for Carbon Emission Disclosure: Evidence from State-Owned Enterprises in Indonesia

Purpose: The purpose of this study is to explore how governance-related determinants affect carbon emission disclosure; if yes, whether government ownership, board diversity, and firm size mediates the relation between these determinants and carbon emission disclosure. We test ownership structure and firm-specific characteristics (board diversity, audit reputation, firm size, audit quality, leverage, and return on asset) towards carbon emission disclosure. Design/methodology/approach: Panel data analysis is used on a final sample of 120 firm-year observations of state-owned enterprises, having published sustainability reports with CED within the last 10 years (2012 - 2021). The direct and mediating effects were tested based on two econometric models and Sobel-Goodman test was conducted to check for the robustness. Findings: Results find that government ownership and board diversity can be employed as a corporate governance mechanism to facilitate public, institutional ownership and audit reputation respectively, towards improved accountability and transparency of CED. Smaller firms with lower financial performance tend to be more motivated to participate in CED in order to attract investment. Research limitations/implications: Several implications arise for various stakeholders including policymakers, and regulatory bodies interested in enhancing sustainability disclosure of firms through good CG mechanism, especially for firms with high government ownership. The findings of this research have wide implications in formulating an efficient CG mechanism for developing countries as SOEs are still prevalent. Originality/value: This study proposes the role of government ownership and board diversity as a CG mechanism and contributes to the voluntary literature, in particular, the link between CG determinants and practices underlying CED.

Financial Technology and Service Quality for Purchasing Decisions Through Customer Trust in Indonesian State-Owned Enterprise (BUMN)

The rapid progress of the internet and technology continues to unfold, giving rise to innovations in various sectors dependent on these advancements. Financial technology is one such evolving technology in the current landscape. According to the theory, financial technology is defined as the application of technology aimed at enhancing the value of financial services and has the potential to increase customer trust through the development and provision of products. However, specific research on financial technology remains scarce. The focus of this research is to assess the influence of financial technology and service quality on purchasing decisions through customer trust. The research methodology employs a quantitative approach with the distribution of questionnaires. The sample for this study consists of 360 respondents, and the data analysis technique used is Structural Equation Modeling-Partial Least Square (SEM-PLS). The results of this study indicate that financial technology and customer trust significantly and positively impact purchasing decisions. Service quality also has a positive and significant effect on customer trust and purchasing decisions. However, financial technology and purchasing decisions do not exhibit a significant positive impact. The inclusion of the customer trust variable is considered crucial as it can mediate relationships with other variables.

Dont Ask, Dont Tell: A Study on Whistleblowing Behavior in Indonesia State-owned Enterprises

Dont Ask, Dont Tell: A Study on Whistleblowing Behavior in Indonesia State-owned Enterprises

Corporate Sustainability and Financial Performance: Evidence from State-owned Enterprises in Indonesia

Corporate sustainability is a business approach to meet company needs and create stakeholders’ value in the long term. This is reflected in the company’s sustainable strategic planning and responsibility that is more inclusive and focuses on environmental, social, and corporate governance. This study aims to analyze whether corporate sustainability has an impact on the company’s financial performance. The sample studied consisted of 13 listed State-owned Enterprises (SOEs) in Indonesia for the period 2017–2021. To measure corporate sustainability, independent variables consist of the three pillars of environment, social, and governance or ESG (environment, social, governance). The environmental pillar consists of three categories, namely resource use, emissions, and innovation. While the social pillar consists of four categories, namely labor, human rights, community, and product responsibility. Finally, the governance pillar consists of management, shareholders, and social responsibility strategy. The company’s financial performance which is the dependent variable was measured using data on return on investment (ROI) and return on equity (ROE). Data analysis technique used is Automatic Linear Modeling using SPSS. The results of the study show a positive significant relationship between product responsibility (on the social pillar) with ROI and ROE. On the other hand, there is a negative significant relationship between management (on the governance pillar) to ROI and ROE. While other variables show no significant relationship to both ROI and ROE. The practical impact of this research will help academics, business entities, corporations, policymakers, regulatory authorities, and governments to better understand the relationship between sustainability and financial performance. It can also help companies to operate more effectively and efficiently in implementing corporate sustainability in state-owned enterprises in developing countries such as Indonesia. Keywords: corporate sustainability, ESG, financial performance

Is There A Conflict Of Interest In Indonesia’s Soe Investment Decision?

In financial management, the Director of State-Owned Enterprises (SOEs) in Indonesia synergizes with the Ministry of SOE to make investment decisions. One of the most common types of investment in SOEs is the purchase of shares in private companies. Through buying shares, SOEs can expand their business lines and project bigger profits. However, it is often found that the decision to purchase private company shares is made by SOEs due to a conflict of interest. This paper aims to determine the level of involvement of conflicts of interest in the decisions of SOEs in Indonesia to invest in the purchase of shares of private companies. Due to data limitations, the authors used a qualitative technique with an explanatory case study to meet the research aims. The analysis tested of 14 Indonesian SOEs' investment decisions when investing in the purchase of shares in private companies during the 2013–2022 period. The findings show allegations of conflicts of interest in several share investment decisions made by SOEs in Indonesia. This conflict of interest can occur because of a family relationship between the Board of Directors of SOEs and the management of private companies. In addition, there is also a political-party relationship between the parties involved. These findings can help several parties, including SOE and the Ministry of SOE, better understand the limits of investment that can be made. In the long run, the Ministry of SOE, as the supervisor of SOEs, can establish an early warning system to determine whether or not the investments made are appropriate. Most of the previous research only examined the effects of a company's investment and its impacts. It explores the company's stock price valuation process. No research has been found that specifically discusses SOE investment in Indonesia in private company shares.

Culture Internalization for AKHLAK BUMN: A Uniformized Core Values of All Indonesian State-Owned Enterprises

In today's business landscape, companies must be increasingly agile to meet the demands of developing business potential, changing customer needs, and rising competition. This includes State-Owned Enterprises (SOEs) that aim to deliver social and economic value. Internalization of core values is crucial in creating a culture that drives the company's performance. Therefore, the activation program and measurement methods for culture are key to the success of the transformation. Through the implementation experience, this practitioner study aims to identify the necessary infrastructure for managing the uniformized culture, activation programs, and measurement methods in companies. The core value set by the Ministry of SOEs or AKHLAK BUMN, guides the behavior of employees to support company performance. Implementing core values in each SOE company will facilitate talent mobility and ensure that the transformation process aligns with the ministry's objectives.

Effect of intellectual capital on organizational performance in the Indonesian SOEs and subsidiaries: roles of open innovation and organizational inertia

PurposeThis study aims to investigate the direct effect of intellectual capital on the organizational performance of Indonesian state-owned enterprises (SOEs) and their subsidiaries. Furthermore, it also examines whether the relationship is mediated by open innovation and moderated by organizational inertia.Design/methodology/approachThis study is designed as quantitative research. A survey method is employed to collect data by distributing questionnaires to the upper-level managers of the SOEs and their subsidiaries. A total of 293 questionnaires were distributed to the respondents, and 97 responses were obtained for further analysis. The partial least square structural equation modeling (PLS-SEM) is used to test the hypotheses. A mediation-moderation research framework is employed.FindingsThe results show that intellectual capital has a positive effect on organizational performance. Further results also demonstrate that open innovation mediates the intellectual capital–organizational performance relationship and organizational inertia moderates the intellectual capital–organizational performance relationship. Theoretically, the findings contribute to the resource-based view (RBV) and knowledge-based view (KBV) by providing empirical evidence of the importance of distinctive internal resources in achieving superior organizational performance. Practically, the findings provide strategic information for managers that they should properly manage intellectual capital, open innovation and organizational inertia because of their effects on organizational performance.Originality/valueFirst, this study addresses the previous research gaps by confirming that intellectual capital has a positive effect on organizational performance in the research setting of an emerging market. Second, by using a mediation research framework, this study shows that open innovation mediates the relationship between intellectual capital and organizational performance. Third, by using a moderating research framework, this study also reveals that organizational inertia weakens the relationship between intellectual capital and organizational performance. Those associations are rarely researched.