Yudi Budi Yuniarso, Bambang Bernanthos

State-Owned Enterprises as Agents of Development: Between Business Interests and Social Responsibility

Introduction

State-owned enterprises as agents of development: between business interests and social responsibility. State-Owned Enterprises (SOEs) balance business profit with social responsibility for national development. This research explores governance dilemmas and regulatory needs for optimal impact.

Abstract

This research examines the dual role of State-Owned Enterprises (SOEs) as business entities and agents of national development. The study analyzes how SOEs balance profit orientation with social responsibility in carrying out their function as state instruments in economic development. Through a literature review approach and document analysis of several SOEs in Indonesia, the research reveals the dynamic relationship between commercial objectives and social missions. The results indicate that SOEs face dilemmas in balancing business efficiency with public service obligations, while corporate governance emerges as a key factor in optimizing both roles. The research concludes that clear regulatory frameworks and effective monitoring mechanisms are necessary to ensure SOEs can optimally fulfill their dual functions.

Review

The proposed research addresses a highly pertinent and enduring challenge concerning the role of State-Owned Enterprises (SOEs) in national development. The tension between commercial viability and social mandate is a critical policy and management dilemma globally, making this study's focus on SOEs as both business entities and agents of development particularly timely and relevant. The title clearly encapsulates this dualistic nature, setting the stage for an investigation into how these organizations navigate the inherent conflict between profit orientation and social responsibility. This is a foundational issue for countries leveraging SOEs for economic growth and public welfare. Methodologically, the study proposes a literature review coupled with document analysis of several Indonesian SOEs, which offers a robust approach for understanding the theoretical underpinnings and practical manifestations of this dual role within a specific national context. The abstract effectively highlights key findings, revealing the 'dynamic relationship' between commercial objectives and social missions, and pinpointing the 'dilemmas' SOEs face in balancing business efficiency with public service obligations. Crucially, the identification of corporate governance as a 'key factor' is a significant insight, suggesting that internal organizational structures and practices are pivotal in optimizing both functions. This focus on governance provides a valuable analytical lens. In conclusion, the research effectively articulates the complexities inherent in SOE operations and provides a clear direction for policy. The emphasis on 'clear regulatory frameworks and effective monitoring mechanisms' as essential components for SOE success in fulfilling their dual functions offers a practical and actionable recommendation for policymakers and SOE boards. This study promises to contribute meaningfully to the literature on public sector management and development economics, providing valuable insights for countries striving to maximize the developmental impact of their SOE sector while ensuring their sustainability.

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