SOE's Response to Global Turbulence

Bisnis, JAKARTA — The influx of external sentiment stemming from global geopolitical conflicts isn't anticipated to exert a significant spillover effect on expansion plans throughout 2024. State corporations are also expected to adeptly navigate company performance amid the latest volatility.

The retaliation from Iran against Israel's recent attack has led to a correction in the capital market, including the stock market and shares of State-Owned Enterprises (SOE). The commencement of trading after the Idul Fitri holiday saw a decrease in the prices of state-owned stocks. (See infographic)

In light of the current situation, Minister of SOE Erick Thohir has cautioned state corporations to act swiftly to minimize the impact of the recent turmoil. Erick urged SOEs to promptly reassess operating costs, including capital expenditure (capex) and maturing debt, as well as corporate action plans. Additionally, he emphasized the importance of conducting stress tests in response to the evolving global conditions.

For state-owned banks, Erick urged them to maintain a balanced allocation of credit, considering the potential impact of rupiah volatility, interest rates, and oil prices.