SOEs Minister Rini Soemarno said the holding company would increase efficiency and provide better leverage for the companies to increase external funding in a bid to support the government’s massive infrastructure projects.

“Due to the enormous amount of construction works, we are first concentrating on building toll roads. [With the better leverage], the toll developments will not depend on the state budget,” she said after a limited meeting regarding the SOE holding company at the State Palace on Monday.

According to the SOE holding companies roadmap, the ministry will establish holding companies in every strategic business sector, including the mining sector, financial sector, renewable energy sector and construction sector.

Rini added that establishing holding companies by sector would be prioritized first, adding that if there were companies with multiple assets such as hotels or other non-core assets, the ministry would begin allocating those assets to the relevant holding company so they could be more efficient.

Meanwhile, Cabinet Secretary Pramono Anung said President Joko “Jokowi” Widodo encouraged SOEs to not only act as the engine of the national economy, but to also provide multiplier effects and be more competitive globally.

“The President has called for the development of the holding company to be carried out carefully, and seriously, with attention to efficiency and coordination. And to also make state-owned companies more efficient and agile, and free of non-professional practices,” he explained.