Efforts to reorganize the Holding Governance are being initiated following the formation of the SOEs’ Defense Industry Holding, one of these was made by organizing the DEFEND ID Leaders Forum Chapter 2 under the theme of ‘Holding Governance’ by presenting a resource person, Assistant Deputy for Corporate Law at the Ministry of SOEs, Republic of Indonesia, Rini Widyastuti. The event, which was attended by the BOD, BOC, Legal and corporate secretaries of Holding SOEs for the Defense Industry and the Ministry of SOEs, was held in a hybrid manner at The Westin Hotel Jakarta on March 22, 2022.
President Director of PT Len Industi (Persero), Bobby Rasyidin, in his speech conveyed the importance for members of Holding DEFEND ID to have harmony in the fields of finance, marketing, operations to portfolio management of subsidiaries.
“This second Leaders Forum serves as a medium of communication between among in the holding with a focus on discussing Holding Governance which is done in with relaxed discussions,” said Mr Rasyidin.
The holding transformation process is also a concern for the Ministry of SOEs as revealed by the Assistant Deputy for Manufacturing Industry of the Ministry of SOEs, Liliek Mayasari, in front of the DEFEND ID Leaders Forum participants. According to Mrs Mayasari, an understanding is required with regard to supervision from the parent board of commissioners to subsidiaries, and vice versa.
“Following the formation of holding, of course there will be changes in work patterns, for example, (submission of) the proposal for State Capital Investment (PMN) to the parent first and other matters related to corporate governance. In the future, it is necessary to schedule a sharing sessions with established existing holdings such as Plantation and Mining Holdings to learn the dynamics of the holding transformation process,” said Mrs Mayasari.
Meanwhile, in her presentation, Mrs Rini Widyastuti, Assistant Deputy for Corporate Law, gave a comprehensive talked on the dynamics of forming holdings from a corporate legal perspective. Mrs Widyastuti emphasized that the issuance of Government Regulations No 72 of 2016 was an effort to strengthen the holding of SOEs.
“Government Regulations No. 72 of 2016 emphasizes the implementation of holding, including the government’s control function over SOEs holding companies through the Series A share ownership mechanism,” said Mrs Widyastuti.
Ownership of Series A shares requires regulations of important issues such as appointment of members of the board of directors and commissioners and changes to the articles of association, the structure of share ownership, mergers and consolidations of subsidiaries.
“Soon, the Holding Manager must complete the master documents that will serve as a reference for the holding members,” said Mrs Widyastuti.
SOEs Defense Industry Holding has officially been established which was marked by the signing of the Capital Authorization Deed on March 2, 2022. PT Len Industri (Persero) has been assigned as parent of Holding DEFEND ID with PT Dahana, PT Pindad, PT Dirgantara Indonesia and PT PAL Indonesia as members.
PT Len Industri (Persero) was appointed as the holding parent of the SOEs Defense Industry Holding considering that the trend of future war defense based on the C5ISR network centric warfare, as well as the ability to integrate technology from each defense dimension, and the fact that PT Len Industri has the experience as the Holding Company for its subsidiary.
As members of the holding, PT Pindad has a focus on land-based platforms, MRO and the provision of weapons and munitions; while PT Dirgantara Indonesia with a focus on airborne and MRO platforms; PT Pal Indonesia with a focus on developing marine and MRO units, and PT DAHANA with a focus on product development of energetic materials (explosives) for all defensive elements respectively.