Title:
STATE-OWNED ENTERPRISES AND NON-STATE-OWNED ENTERPRISES: PERFORMANCE COMPARISON BY INDUSTRIAL SECTOR

Authors:
Arum Kusumaningdyah Adiati, Purnama Siddi, Bambang Sutopo, Indonesia

Abstract:

A total of 20 State-Owned Enterprises (SOEs) in Indonesia have currently listed their shares of less than 50 percent on the Indonesia Stock Exchange (IDX) to raise additional capital to expand their business. These SOEs must be able to compete with non-SOEs in similar industries on the Stock Exchange. This study examines whether these SOEs have performance that outperforms Non-SOEs. The findings of this study reveal that, in general, SOEs have higher performance compared to Non-SOEs. However, the results of performance comparisons between each SOE and Non-SOE performance for each industry subsector indicate that there are variations in SOE performance. Some SOEs are superior compared to Non-SOEs, SOEs that have comparable performance with Non-SOEs, and SOEs with lower performance compared to Non-SOEs. These findings suggest that the results of performance comparisons between SOEs and Non-SOEs as a basis for making decisions relating to SOEs need to be based on the results of comparisons between each SOE and Non-SOEs rather than being based on the results of comparison of SOEs with Non-SOEs in general.