Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/328695 
Year of Publication: 
2023
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 11 [Issue:] 2 [Article No.:] 69 [Year:] 2023 [Pages:] 1-20
Publisher: 
MDPI, Basel
Abstract: 
This study investigates the privatization situation in Indonesia between 1996 and 2020. This study conducts a comparative analysis to see the impact of privatization on companies' performance and, with regard to the crisis that occurred with respect to the companies that have been privatized, its economic impact. Furthermore, the determinants of the government's decision to release its share from state-owned companies are also identified using the regression method. This study found, with regard to the state-owned enterprises in Indonesia, the impact of the economy as there were no differences in the companies' performance before and during the crisis. This study found that the ability of the company to generate profits declined after privatization, but the company's efficiency improved. Otherwise, the debt ratio of state-owned companies decreased after the privatization was carried out. Almost the same results were found when comparing the long-term performance with the short-term performance of the privatized SOEs. The determining factors that influenced the Indonesian government's decision to divest its shares in state-owned companies were Indonesia's corruption perception index ranking, the company's ability to generate profits on its sales, and government ownership percentage stock in SOEs.
Subjects: 
economic crisis
performance
privatization
speed
state ownership relinquishment
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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