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State-owned enterprises (BUMN) are businesses owned wholly or partially by the Indonesian government. While BUMNs ensure vital sectors are controlled and supported by the country, they also tend to be less efficient and profitable than privately-owned companies due to regulations and less professional management. Examples of BUMNs include construction, energy, and transportation companies.
State-owned enterprises (BUMN) are businesses owned wholly or partially by the Indonesian government. While BUMNs ensure vital sectors are controlled and supported by the country, they also tend to be less efficient and profitable than privately-owned companies due to regulations and less professional management. Examples of BUMNs include construction, energy, and transportation companies.
State-owned enterprises (BUMN) are businesses owned wholly or partially by the Indonesian government. While BUMNs ensure vital sectors are controlled and supported by the country, they also tend to be less efficient and profitable than privately-owned companies due to regulations and less professional management. Examples of BUMNs include construction, energy, and transportation companies.
Definition of State-Owned Enterprises In general (BUMN) is a
business entity wholly or partially owned by the state through direct participation originating Disadvatages • Management of production factors is not efficient • Company management is less professional • A monopoly on vital sectors • Company management is hampered by binding regulations • It's hard to get profits and often lose money Advantages • Mastering sectors that are vital to the lives of many people • Get guarantees and support from the country • The capital is certain because it gets capital from the state • Company survival guaranteed • As a source of state income Example • PT. Adhi Karya ( Persero ) Tbk • PT Perusahaan Gas Negara • Perum Damri • PT Balai Pustaka