Big Government

Just start to realized, how big is the government is. I always thought that converting 2000+ data center is crazy effort, but looking at the size of 20,000+ bank account of the government body is event more crazy in scale. Indonesia is at 4th largest countries in the world. The degree of complexity managing the government is very complex.

10 instansi pusat dengan jumlah PNS terbanyak adalah
1.Kementerian Agama sebanyak 233.910 (5,38%)
2.Kementerian Riset Teknologi dan Pendidikan Tinggi 113.087 pegawai (2,60%)
3.Kementerian Luar Negeri 69.332 (1,59%)
4.Kementerian Pertahanan 58.848 PNS (1,35%).
5.Kementerian Kesehatan sebanyak 50.897 (1,17%)
6.Kementerian Hukum dan HAM 43.121 pegawai (0,99%)
7.Mahkamah Agung 30.608 (0,70%).
8.Kementerian Perhubungan sebanyak 29.195 (0,67%)
9.Polri 24.489 (0,56%).

Maret 2017, tercatat jumlah PNS baik pusat maupun daerah sebanyak 4.351.496 orang (78.99% di daerah)

September 2022 sebanyak 4.315.181:
Pegawai Negeri Sipil (PNS) sebanyak 3.956.018
Pegawai Pemerintah dengan Perjanjian Kerja (PPPK) 359.163.

Mayoritas dari total PNS mengisi jabatan
jabatan fungsional sebanyak 2.103.67
jabatan pelaksana sebanyak 1.503.683
jabatan pengawas 222.064
jabatan administrator 95.771
jabatan pimpinan tinggi 20.464
jabatan eselon 5 10.363

Jumlah rekening K/L 24.108 rekening dengan VA menjadi sekitar 2000
Jumlah satker 26,000
Kementerian agama: 4.474 satker (2013), satker Madrasah Ibtidaiyah Negeri (MIN) 1.686 satker
Kementerian Hukum dan Hak Asasi Manusia: 1000+ satker

Pedoman Tata Kelola BUMN – SOE Governance Strategy

Menarik, Permen BUMN PER-2/MBU/03/2023

PERATURAN MENTERI BADAN USAHA MILIK NEGARA REPUBLIK INDONESIA NOMOR PER-2/MBU/03/2023 TENTANG PEDOMAN TATA KELOLA DAN KEGIATAN KORPORASI SIGNIFIKAN BADAN USAHA MILIK NEGARA. 3 Maret 2023, 229 Pasal, Menteri BUMN ERick Thohir.

Prinsip Tata Kelola Perusahaan yang Baik sebagaimana dimaksud pada ayat (1) meliputi:
a. transparansi (transparency), yaitu keterbukaan dalam melaksanakan proses pengambilan keputusan dan keterbukaan dalam mengungkapkan informasi material dan relevan mengenai perusahaan;
b. akuntabilitas (accountability), yaitu kejelasan fungsi, pelaksanaan dan pertanggungjawaban Organ Persero/Organ Perum sehingga pengelolaan perusahaan terlaksana secara efektif;
c. pertanggungjawaban (responsibility), yaitu kesesuaian di dalam pengelolaan perusahaan terhadap ketentuan peraturan perundang-undangan dan prinsip korporasi yang sehat;
d. kemandirian (independency), yaitu keadaan di mana perusahaan dikelola secara profesional tanpa Benturan Kepentingan dan pengaruh/tekanan dari pihak manapun yang tidak sesuai dengan ketentuan peraturan perundang-undangan dan prinsip korporasi yang sehat; dan
e.kewajaran (fairness), yaitu keadilan dan kesetaraan di dalam memenuhi hak pemangku kepentingan yang timbul berdasarkan perjanjian dan ketentuan peraturan perundang-undangan.

Bagian Kedua
Peta Jalan Badan Usaha Milik Negara
Paragraf 1
Materi Muatan Peta Jalan Badan Usaha Milik Negara
Pasal 86
Peta Jalan BUMN paling sedikit memuat:
a. penjabaran visi, misi, dan tujuan strategis yang akan dicapai oleh Menteri dalam mengelola Portofolio BUMN berdasarkan pada tujuan penciptaan nilai tambah ekonomi dan sosial yang berkesinambungan bagi Indonesia;

f. bangun guna serah (build operate transfer);
g. bangun milik serah (build own transfer);
h. bangun serah guna (build transfer operate);
i. bangun pelihara serah (build maintain transfer);
j. lengkapi guna serah (equip operate transfer);

BAB VII
PENYELENGGARAAN TEKNOLOGI INFORMASI BUMN
Bagian Kesatu
Arsitektur Teknologi Informasi
Pasal 203

Industrial Hilirisasi (Value Increament)

Industrial hilirisasi (downstreaming) as the ‘development of industry in an attempt to strengthen the industrial structure of the agricultural, mining and oil-based chemical sectors’ (KEMENPERIN).

Despite its increasing use in various industry sectors, the concept is often understood differently by different ministries and departments (Berlian 2016).

• The Ministry of Industry, for instance, pushes hilirisasi towards creating added value across the value chain before the product is exported.
• The Ministry of Trade aims at increasing the export value, as well as maintaining these activities in a stable economic environment.
• The Ministry of Agriculture, on the other hand, sees hilirisasi differently; it is a means towards promoting the welfare of farmers and increasing their income by encouraging value capture through off-farm activities.
• The Ministry of Finance aims to increase state revenue through extracting value throughout the industrial value chain.

Although intersecting in certain aspects, these different ministerial objectives may contribute to different key performance indicators and, as a result, ineffective implementation.

Hilirisasi adalah proses atau strategi suatu negara untuk meningkatkan nilai tambah komoditas yang dimiliki. Dengan hilirisasi, komoditas yang tadinya di ekspor dalam bentuk mentah atau bahan baku menjadi barang setengah jadi atau jadi.

Berdasarkan paparan Menteri Investasi dan Kepala BKPM Bahlil Lahadalia, manfaat hilirisasi adalah memberikan nilai tambah bagi perekonomian melalui kinerja ekspor yang positif. Salah satu wujud nyata hilirisasi di Indonesia adalah larangan ekspor komoditas mentah. Bahlil mencontohkan, pada 2017 sebelum ada larangan, ekspor produk besi dan baja Indonesia hanya US$3,3 miliar. Lalu, setelah ada larangan, maka pada 2022 realisasi ekspor produk besi dan baja tercatat sebesar US$27,8 miliar. “Kita lakukan hilirisasi untuk mewujudkan SDGs (Sustainable Development Goals). Ini adalah jalan strategi yang harus Indonesia lakukan dalam rangka meningkatkan pendapatan per kapita. Mendorong jadi negara baik dan optimalisasikan SDA yang ada. Ini ada strategi negara,” jelas Bahlil dalam acara webinar Indef pada Rabu (8/2) lalu.

Kinerja Sektor Infrastruktur Transportasi

Any organization that designs a system (defined broadly) will produce a design whose structure is a copy of the organization’s communication structure. Melvin E. Conway (1967) Conway’s Law

Data-data berikut dari laporan tahunan perusahaan yang bersangkutan. Ini informasi publik. Menarik, karena ini menggambarkan bagaimana pola komunikasi pada perusahaan tersebut. Jumlah karyawan dan divisi kurang lebih juga sebenarnya sama.

-MRT Jumlah karyawan 700an, Divisi 23, 5 direktur
CEO (4): Corsec, Strategy, Audit, Risk/HSE
BD (3): Business Expansion, Commercial Retail, TOD
Construction (5):
Finance (5): Finance, GA, HC, IT, Legal
Ops (5): Customer, Ops, Railway Maintenace, Railway Operation, Supply Chain
Aset 19T, Revenue 1.3T (tike 0.06T, Subsidy 0.8, Non Tiket 0.4), Profit 147 milyar.

-Jasa Armada Jumlah karyawan 820, kantor pusat 46 (ABK 535, Pandu/Pilot 10, Penunjang 41), 10 divisi 4 direktur
Aset 1.4T, Revenue 820M, Laba 158M

-Soechi Lines Karyawan 237
Revenue: US$144,08 juta atau setara dengan Rp2,24 triliun. Laba Rp100,89 miliar
Total pendapatan dari angkutan Grup Pertamina pada 2022 menyumbang 68 persen dari pendapatan, naik dari tahun sebelumnya 60 persen.

-Kilang Pertamina
Jumlah Karyawan 5,868

-Geodipa Energi, karyawan 409
Pendapatan Rp 880,369 milyar (2020)
Laba bersih Rp 196,579 milyar (2020)
Total aset Rp 4,805 triliun (2020)

Port Business is infrastructure business that rely on the operation – Strategic Planning

Port Business. Interesting, I start to recap again about my understanding on the port business.

Ports are incredibly complex industries that thrive on efficient operations and supply chains. By ensuring that there is no lag between the vessel entering the port, having its cargo loaded or unloaded, refuelled and inspected, cleared to depart, and finally pushed out of the berth, these ports allow countries all around the world to bring in vital trade and commerce to the region.

Berth
When used as a noun, berth is defined as: An allocated space within a dock in which to moor a ship.
When used as a verb, berth is defined as: To moor a ship to its allocated space within a dock.

Dock
When used as a noun, a dock is defined as: A structure or structures to which a boat can be moored, or the water adjacent to that structure or structures.
When used as a verb, a dock is defined as: To moor a ship to a fixture, such as a pier or quay.

Multi Line Free Flow (MLFF)

Currently, there is 34 toll roads in Indonesia with total length 987 km, serve 3.7 million vehicles daily on average. The National Development Mid-term Plan (2015 – 2019) has targeted toll road development for 1,807 km in 2019.

Manual toll payment system, the minimum service standard sets:

• average transaction speed of maximum 6 second per vehicle on an open transaction,
• close transaction should serve at maximum 5 second per vehicle on the entrance and maximum 9 second per vehicle on the exit

Electronic Toll System (ETS):

• standard of maximum 4 second per vehicle on take toll ticket and maximum 5 second per vehicle on transaction.
• The maximum number of queue in toll booth should be no more than 10 vehicles per booth at a normal traffic condition

The Greater Jakarta tolls currently serve 47% share of toll traffic. Jasa Marga has officially introduced this new non-cash payment system in Jagorawi since 12 September 2017. Indonesian toll currently served by 261 toll gates that consisted of 1,484 toll booths.

The Jagorawi toll road network that consisted of 14 toll gates overall. The case study specifically was focused on 6 (six) toll gates i.e. Bogor, Cibubur, Taman Mini, Dukuh, Cimanggis Utama and Gunung Putri, accounted for 69 toll booths. Jagorawi toll road network currently covered 59 km length. It served total 550,000 daily traffic on average (2016). The six toll gates being studied have around 220,000 daily traffic (September, 2017).

Piloting and Towage Services

Tukang Parkir = Asset Protection Specialist. Interesting. Port business is very big business. Again, the same premises. Port business is infrastructure business.

Shipping Lines

SC Majestic LXII: Crude Oil Tanker, Gross Tonnage: 61,724, length overall (LOA) is 244.6 meters and her width is 42.03 meters.

Success Fortune XL: Gross Tonnage: 158,993, valuation $46m, ength overall (LOA) is 332.07 meters and her width is 58.04 meters.

Barakuda Natuna: Crude Oil Tanker, Gross Tonnage: 61,619

SC Gold Ocean: Oil Products Tanker, Gross Tonnage: 25,651. Valuation $17.3m

SC Commander LVII: LPG Tanker, Gross Tonnage: 44,694

SC Discovery XLVI: LPG Tanker

Scale:
Very Large Crude Carrier (VLCC) tankers: 300,000 DWT
Aframax tankers: 100,000 DWT
Very Large Gas Carrier tankers (VLGC): 50,000 DWT
General Purpose (GP) tankers: 10,000 DWT
Small tankers: <10,000 DWT

number of ocean liners (armada angkutan laut nasional) 37,733 (2011) CAGR 12%

ISO 9001:2015 Quality, ISO 14001:2015 EHS, ISO 45001:2018 OHS

Interesting, one of the portrait of shipping industry based on their annual report.

Shipping Lines Performance

First Semester 2016 Performance
PT Samudera Indonesia Tbk (SMDR) – $208.78 million
PT Soechi Lines Tbk (SOCI) – $63.98 million
PT Wintermas Offshore Marine Tbk (WINS) – $48.54 million
PT Humpuss Intermoda Transportasi (HITS) – $26 million
PT Pelayaran Tempuran Emas (TMAS) – $64.21 million in 2016

Soechi Lines (2022): 32 unit, 1.6jt DWT
Shipping Business: Tanker vessel; Shipyard Business (Dry docking, maintenances)

Samudera (2022): 35 unit (2022), 1.9 DWT (2020)
GRI Content Index. Complies with the requirements of SGX Rulebook, Practice Note 7.6: Sustainability Reporting GUide.

*Each TEU is about 10 tons, so 1,000 tons of cargo deadweight provides for 100 TEUs.

MV Sinar Penida (2018) 613 TEU (Gross Tonage 6846t)

Container, Tankers, Bulk Carrier, Cable Ship, OSV (Offshore Support Vessel), Floating Processing Unit

small vessel 1500 DWT to VLCC 308,000 DWT

Big government

Crony Capitalism: By-Product of Big Government

All governments are crony capitalists

Crony capitalism the enemy of free enterprise

Money first belongs to governments ‘not individuals’, and that anything less than a 100 per cent tax rate constitutes a ‘subsidy’.  It is the view of the serf: governments generously allow us to keep some money, which by rights is first theirs

The Noble Crony: Big Business on the Politics of Business

Crony Capitalism: Inefficient, Unjust, and Corrupting

Cronyism is a term describing an economy in which success in business depends on close relationships between business people and government officials. It may be exhibited by favoritism in the distribution of legal permits, government grants, special tax breaks, etc. Cronyism is believed to arise when political cronyism spills over into the business world; self serving friendships and family ties between businessmen and the government influence the economy and society to the extent that it corrupts public-serving economic and political ideals

What’s Bad About Crony Capitalism? crony capitalism generates significant economic rents, which result in a misallocation of resources and lower incentives for wealth creation

One of the greatest dangers to the growth of developing countries is the middle income trap, where crony capitalism creates oligarchies that slow down growth

You Can’t Regulate Crony Capitalism Away

Increasing the scope of government over business accelerates the problem of crony capitalism

Rent-seeking, in this case, is when businesses divert their resources towards capturing a bigger portion of the existing wealth in a market instead of using their resources to create new wealth.

government continues to enjoy considerable discretionary power over the awarding of contracts to build and manage ports, airports, highways, telecom systems, electricity generation and distribution and infrastructure, as well as over land and water resources, all of which can create economic rents

Capitalism Isn’t The Problem. Crony Capitalism Is

Rent seeking is an economic concept that occurs when an entity seeks to gain wealth without any reciprocal contribution of productivity

Rent-seeking is the act of growing one’s existing wealth by manipulating the social or political environment without creating new wealth