The Central Java Provincial Government has taken a strategic step in improving the governance of Regionally Owned Enterprises (BUMD). Through a restructuring of business lines, non-financial regional companies are now directed to return to their core business focus in order to achieve more optimal operational efficiency.
Head of the BUMD and BLUD Bureau of the Central Java Regional Secretariat, Agus Prasetyo, explained that this policy has been implemented gradually since 2020. The step was taken to stop directionless business diversification practices, which had previously hindered the companies' focus on achieving business targets.
As an implementation of this policy, each BUMD now has a clear sector specialization. PT Jateng Agro Berdikari is focused on the food security sector, PT Sarana Pembangunan Jawa Tengah (SPJT) focuses on infrastructure and manufacturing, PT Tirta Utama Jawa Tengah handles raw water supply, and PT Jateng Petro Energi is projected as a holding entity in the energy sector covering operations from upstream to downstream.
Amid fiscal challenges due to fluctuations in Transfers to Regions (TKD), the Central Java Provincial Government emphasizes the importance of synergy. In accordance with Governor Ahmad Luthfi's directives, BUMDs with stable financial conditions are required to collaborate and assist other regional companies needing support. This collaborative approach is considered a key factor in ensuring all BUMD entities remain productively operational.
In addition to revamping the business model, the Central Java Provincial Government is committed to continuing to strengthen corporate governance, risk management, and compliance. The main focus of this policy is to maintain financial health and business sustainability, with the expectation that improved company performance will contribute more significantly to the regional economy.
