Establishing a Welfare State: Optimizing the Role of the State-Owned Enterprise

Mercy Monika R. Sitompul, Runtung Sitepu, Faisal Akbar, Natasya Ningrum Sirait

Abstract

The Indonesian Constitution defines Indonesia as a welfare state. Consequently, the government uses state-owned enterprises as a tool to operate in the private sector to guarantee the government’s presence in remote places or in areas with no personal interests. The primary focus if this study is on why the state’s financial operations, rather than being the primary source of the nation’s income are not performing as well as they should.  The nation’s financial issues are further complicated by separating state property from state finances and including it into council and committee roles as a sovereign state. However, state corporations are required to turn in profits. The research methodology involved data analysis of court orders of financial conflicts brought against managers of state-owned companies with sanctions for corruption offenses. This study aims to distinguish between government programs funded by the profits of businesses controlled by state corporations and those managed by the state apparatus in accordance with the budget.

 

Keywords: welfare state, state-owned enterprise, private sector.

 

https://doi.org/10.55463/issn.1674-2974.51.5.18


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