State-Owned Enterprises (SOEs): The Role in Economic Development and The Determinant of Its Performance

The Indonesian government conduct several strategies to enhance the SOE’s performance. However, some financial indicators show that reform program has not optimally achieved objective SOE Therefore this paper is aimed discuss underlying factors influence As a result, study found contribution of Indonesia SOEs economy relatively low and stagnant. Besides that, many have yet operated optimally. regression result condition getting better when it higher ability generate profits pay off debts. In addition, debts more important maintain performance SOEs, than profit. This also indicate inefficiency in managing employee policy formulation Indonesia’s SOE.