BUMDs should become pillars for regional revenue: Ministry

Jakarta (ANTARA) - Head of the Domestic Policy Strategy Agency (BSKDN) of the Home Affairs Ministry Yusharto Huntoyungo has encouraged region-owned enterprises (BUMDs) to become pillars for regional revenue and provide quality public services.

"Therefore, it is essential to align perceptions on professional, transparent, and accountable BUMD management so that it can provide maximum contribution to the development and welfare of people in regions," he noted in a statement here on Saturday.

Huntoyungo stressed that BUMDs should not be viewed solely as profit-oriented business entities. Beyond that, BUMDs have a significant responsibility as agents of regional development, playing a role in driving local economic growth, creating jobs, and providing better public services.

Furthermore, he stated that strengthening BUMDs is crucial to promoting the fiscal independence of regions.

However, in reality, much of the potential of BUMDs remains untapped due to weak governance, limited innovation, and differing perceptions about the functions and founding philosophy of BUMDs.

Meanwhile, an expert policy analyst at the Regional Representative Council (DPD), Reydonnyzar Moenek, stated that BUMDs face various dynamics that need to be addressed immediately.

He noted that a gap still exists in understanding what BUMDs are and how they should be managed.

Moenek stressed the importance of thoroughly understanding the dynamics of BUMD management, including the philosophical and regulative perspectives.

He pointed out that several parties implement regulations but fail to grasp the philosophical intent behind the establishment of BUMDs, which is to promote community welfare.

One of the key issues in BUMD management is the appointment of leaders. In this regard, Moenek emphasized the importance of upholding the principle of neutrality and avoiding potential conflicts of interest.