Hello friends Summarized! Do you know what BUMN public service is? BUMN is an abbreviation of State-Owned Enterprises, namely companies whose shares are owned by the state. Some SOEs are public service and some are not. Then what’s the difference? And what are the examples of BUMN public services in Indonesia? Come on, see the explanation in this article!
What is BUMN Public Service and Examples
Definition of BUMN Public Service
BUMN Public Service is a BUMN whose business activities aim to provide services to the general public or the public interest. This is in accordance with Law Number 19 of 2003 concerning BUMN. Public service SOEs were established to meet the basic needs of society that cannot be met by the private sector or the market.
BUMN public services are usually engaged in strategic fields such as energy, transportation, communications, health, education, agriculture, and others. BUMN public services must also pay attention to aspects of social welfare, the environment, and equitable development.
Even though it is a public service, BUMN must also manage its finances in a professional and efficient manner. SOEs must pursue profits in order to provide deposits to the state budget either through dividends or taxes. In addition, BUMN must also be able to compete with other companies in the market.
The difference between BUMN Public Service and Non Public Service
Non-public service SOEs are SOEs whose business activities do not aim to provide services to the general public or the public interest. Non-public service SOEs were established to fill market gaps that could not be filled by the private sector or to increase the competitiveness of the national economy.
Non-public service SOEs are usually engaged in commercial fields such as banking, insurance, trade, industry, and others. Non-public service SOEs must prioritize profitability and effectiveness in running their business.
The difference between public service SOEs and non public service SOEs can be seen from the following table:
| Criteria | BUMN Public Service | BUMN Non Public Service |
|---|---|---|
| Objective | Providing services to the general public or public interest | Filling market gaps or increasing the competitiveness of the national economy |
| Business fields | Strategic such as energy, transportation, communication, health, education, agriculture | Commercial such as banking, insurance, trade, industry |
| Important aspect | Social welfare, environment, equitable development | Profitability and effectiveness |
Sample case
The following are some examples of public service SOEs in Indonesia along with their business fields and the products/services they offer:
- PT Pertamina (Persero): operates in the energy sector, producing and distributing petroleum and natural gas.
- PT Perusahaan Listrik Negara (Persero): operates in the electrical energy sector, providing electricity to the community.
- PT Kereta Api Indonesia (Persero): operates in the field of rail transportation, providing passenger and goods transportation services.
- Perum Bulog: operates in the food sector, providing rice at affordable prices for the community.
- PT Telkom Indonesia (Persero): operates in the telecommunications sector, providing telephone, internet and television services.
- PT Kimia Farma (Persero): operates in the health sector, producing and selling medicines and medical devices.
- PT Pupuk Indonesia (Persero): engaged in agriculture, producing and selling fertilizers and pesticides.
- PT Pos Indonesia (Persero): operates in the field of postal and logistics, providing services for sending letters, packages and money.
Conclusion
From the explanation above, we can see that a public service BUMN is a BUMN whose business activities aim to provide services to the general public or the public interest. BUMN public services are different from non-public service BUMNs whose business activities do not aim to provide services to the general public or the public interest.
BUMN public services are usually engaged in strategic fields such as energy, transportation, communications, health, education, agriculture, and others. BUMN public services must also pay attention to aspects of social welfare, the environment, and equitable development. Even though it is a public service, BUMN must also pursue profits in order to be able to provide deposits to the state budget either through dividends or taxes.
Thus this article about what is a public service SOE, the difference with non-public service SOEs, and examples of public service SOEs in Indonesia. Hopefully useful and add to your insight. If you have questions or comments regarding this article, please write in the comments column below. Thank You!
