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LIABILITY OF STATE-OWNED HOLDING COMPANY IN FACING THE IMPACT OF COVID-19 PANDEMIC
YESSI SERENA RANGKUTI1, BISMAR NASUTION2, HIKMAHANTO JUWANA3, MAHMUL SIREGAR4
1, 2, 3,4 Universitas Sumatera Utara, Medan - Indonesia [email protected]
Abstract-- Covid-19 is declared as World Pandemic by WHO and non-natural disaster by Indonesia. Indonesia has reached 333,000 Covid-19 cases per 11 October 2020. The increasing number of Covid-19 cases is resulting in exhaustion of patient shelters. Physical distancing is resulting in economic aftermath. Handling the impact of Covid-19 is implemented under Presidential Decree number 11 and 12 of 2020. State-Owned Holding Company (SOHC) established to manifest the mandate of Article 33 of the Indonesian Constitution has a moral obligation to handle the Covid-19 impact. Various attempts are made in response to people suffering from the pandemic. The purpose of this research is to see if SOHC has functioned as a Public Service Obligation (PSO) or a profit-oriented entity. Normative-empirical legal research was used by collecting literature, regulations, and updated news online and printed to answer how SOHC assists in handling the Covid-19 impact. The research shows that SOHC maintains health, social safety, and purchasing power or anything related to business. Each sector of SOHC is functioned as (PSO) in handling the Covid-19 impact. Indonesia must create decent legal construction in SOHC looking at the attempts made to manifest the mandate of Article 33 in handling the impact of Covid-19.
Keywords—holding company, SOEs, Covid-19
Table of Contents
Introduction
1. PROBLEM
2. RESEARCH METHOD
3. DISCUSSION
CONCLUSION
ACKNOWLEDGEMENT
INTRODUCTION
No country has survived the crisis caused by the Covid-19 pandemic. The IMF calls the 2020 crisis a great lockdown because many countries have implemented large-scale quarantines to tackle the spread of the virus. The great lockdown resulted in a collapse of economic activity. Developed countries experience contraction in economic growth while developing countries experience currency pressure and economic pressure due to foreign capital outflows due to risks to the global economy. In addition, developing countries also experience weak health systems and limited fiscal space in supporting health services. Countries whose economies depend on the tourism industry will also experience disruption. [1]
Indonesian Finance Minister Sri Mulyani declared a recession in the Indonesian economy, which is motivated by the number of business closures. 48.6% of Indonesian Micro, Small, and Medium-sized Enterprises (MSMEs) closed their businesses immediately due to decreased domestic demand, production disruptions, and contract cancellations. Well-known enterprises such as Gojek, Traveloka, Adidas Manufacturers, Garuda Indonesia, Express Taxi, Lion Air Group, and Shell, have imposed Termination of Employment (TOE) in order to maintain the enterprise cash flow. TOE has resulted in increased unemployment and deterioration in the economy and people's purchasing power which are feared to have other impacts, such as an increase in the number of crimes, domestic violence, malnutrition, and child neglect. [2]
After stipulating the Covid-19 pandemic as a non-natural national disaster which has an impact on the increasing number of victims and property losses as well as implications for broad socio-economic aspects in Indonesia, the government, through Presidential Decree Number 9 and 12 of 2020, formed a Task Force for the Acceleration of Covid-19 Handling to deal with the impact of Covid-19 in collaboration with ministries/agencies and local governments.
All government elements - ministries, government agencies, state-owned enterprises (SOEs), regional owned enterprises (ROEs) - work together to fight the Covid-19 and encounter the effects it causes. The institutions that have been actively involved in handling Covid-19 are the National Disaster Management Agency, the Institute for Molecular Biology, the Coordinating Ministry for Economic Affairs, the Ministry of Social Affairs, and the Ministry of SOEs.
The Ministry of SOEs takes quick steps in responding to the impact of the spread of Covid-19, including ensuring food security in order to be aware of the spikes of rice prices that are needed by the Indonesian community. In addition, the Ministry of SOEs has enforced several policies in all SOEs and their fostered partners, such as physical distancing to anticipate the spread of the Covid-19. In the telecommunication sector, SOEs also support the policy of learning from home and worship at home by providing adequate facilities. In the health sector, SOEs allocate the resources to help the community in medical devices procurement. In anticipating economic problems, state-owned banks lowered their SME interest rates to anticipate the impacted business sector.
Currently, Indonesia makes State-Owned Enterprises (SOEs) a state business in realizing the political economy implementation mandated by Article 33 paragraph (2) and paragraph (3) of the 1945 Constitution of the Republic of Indonesia (UUD 1945). The goal of the state by establishing and controlling SOEs is to achieve the greatest prosperity of the people. This objective is then spelled out in the provisions of Article 2 paragraph (1) of Law Number 19 of 2003 concerning SOEs. Thus, SOEs in Indonesia play two main roles: as a state-owned enterprise looking for profits to increase the nation's foreign exchange and as a tool for the government to provide public services to achieve the state's task of realizing the prosperity and welfare of the people. The dual role of SOEs is in line with the division of types of SOEs into public companies (Perum) and limited liability companies (Persero). [3]
In the life of the nation and the state, SOEs are the benchmark for the nation's economy because various sectors of SOEs' work play a role in realizing the country's complex goals. To optimize the national economy, the Indonesian government prioritizes the establishment of State-Owned Holding Company (SOHC). President Jokowi has put forward the SOHC and the plan to launch a super holding company to make the SOHC the spearhead of the Indonesian economy.
Carrying out its duties as an agent of the business, SOHC has the responsibility to serve the community to realize their prosperity and welfare following the mandate of Article 33 of the 1945 Constitution. In facing the Covid-19 pandemic, SOHC has the responsibility not only to protect the economy but also to the welfare of the community. Food raw materials, medical devices, internet networks, and livelihoods are essential but limited for people during the pandemic. Those necessities are the key to peace, security, and welfare of the community, especially during the Covid-19 pandemic.
Indonesia is in a precarious condition facing an economic recession, caused by limited patient shelters, increasing unemployment, hampered education, and lower purchasing power during the Covid-19 pandemic. This research was conducted to see the functions carried out by the SOHC to face the impact of the Covid-19 pandemic.
1. PROBLEM
Facing the large number of people suffering from the impact of the Covid-19 pandemic, this research was conducted to answer the problem of how SOHC functions to deal with the impact of the Covid-19 pandemic.
2. RESEARCH METHOD
This is qualitative research with a normative-empirical legal approach. The normative approach was carried out by looking at laws and regulations, principles, and theories relating to the responsibility of SOHC in dealing with the impact of the pandemic. The juridical approach was carried
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out by looking at the facts concerning the efforts done by the SOHC to deal with the Covid-19 pandemic. The data were collected by accessing the latest information through online media, printed media, as well as news broadcasts on television and radio to answer the research questions.
3. DISCUSSION
In their development, State-Owned Enterprises (SOEs) have experienced changes, including the existing form of Limited Liability Company and Public Company in SOEs. Such a form of SOEs' business entities is subject to their respective regulations which are lex specialists. Limited company, for example, will be subject to the provisions of Law Number 40 of 2007 concerning Limited Liability Companies, and so do other forms of SOEs.
SOEs are generally legal entities with capital ownership mostly owned by the government, i.e. their capital comes from separated state assets. The capital owned by the government is then manifested in the form of company shares. In the state-owned enterprises, the government owns at least 51% of the shares, thus making the government the controlling shareholder. With the role of the controlling shareholder, it is expected that, in its management, SOEs will become business fields that can prosper the community. The profits of SOEs are set aside to support community strength by holding various programs to realize the growth and development of small and medium-sized communities.
SOEs are engaged in vital businesses in the economic growth and development in Indonesia, especially in the business sector closed for foreign investment and in the sectors that are in accordance with the contents of Article 33 of the 1945 Constitution. At this time, SOEs have not yet reached their maximum performance. The management of SOEs has suffered losses in several sectors so that social prosperity, which is the goal of SOEs, has not been achieved optimally. Moreover, the development of SOEs is still far behind the development of privately owned enterprises. Structurally, private enterprises are currently no longer extras because the welfare of the nation is heavily influenced by their production activities. Meanwhile, the government only provides transportation infrastructure, public facilities, or means of communication to make the business climate healthy.
To optimize the performance of SOEs and make their structure better, the government has implemented a program to improve the SOEs system in Indonesia. As previously mentioned, the work performance of SOEs has not been optimal, so it is important to make improvements in the form of SOEs reform through restructuring (revitalization), profitization, and privatization. In the restructuring program, one of the main focuses of the Ministry of SOEs in the framework of developing SOEs is a rightsizing program. The SOEs' rightsizing program is the main program in restructuring SOEs through a sharper mapping and regrouping/consolidation to achieve a more ideal number and scale of SOEs businesses.
The guideline for rightsizing refers to Article 33 of the 1945 Constitution as the basis for making economic policies. If the products or services provided by the SOEs are included in the category of "relating to the lives of many people", as outlined in Article 33 of the 1945 Constitution, the state's majority ownership in the SOEs must be maintained. Meanwhile, if the products or services provided by the SOEs are not included in the category of "relating to the lives of many people", the state's majority ownership in such SOEs can be reconsidered or even divested, especially in the business sectors where state's participation is no longer important.
To realize the rightsizing program, various shareholder actions can be implemented by SOEs, such as Stand Alone, Merger or Consolidation, Holding, Divestment, and Liquidation. Among these actions, holding is the form discussed further in this paper. A holding company is a form of business in which there is one holding company that controls some subsidiaries with the same type of business. A holding company has such shares in its targeted company so it becomes the controller of subsidiary companies. The formation of a Holding Company in SOEs is a plan to establish an order system and implementation of SOEs business. [4]
As mandated by the Constitution, SOEs cannot only be used as a tool to provide benefits to the state but also to provide the benefit of the maximum prosperity of the people, indicating a big achievement of SOEs. Finding the best format for SOEs management and better performance of SOEs
does not only require policy supports but also a new consensus so that SOEs become the motor of economic growth.
In order to optimize the role of SOEs in serving the community, the idea of forming a similar group company (holding company) is an option to have greater power to compete. Holding companies can be such a powerful resource as some similar companies do not need to compete with each other. The concept of forming a holding company is a unifying step that can make similar businesses come together as a group to carry out corporate actions collectively.
The idea of a state-owned holding company (SOHC) was first sparked during Tanri Abeng's term as the Minister of SOEs in 1998 - 1999. At that time, Tanri Abeng was specifically assigned by President Soeharto to manage SOEs to be able to pay off Indonesia's state debt. President Soeharto himself had tried privatization to deal with Indonesia's mounting debt, but such privatization had not been completely successful; therefore, he assigned Tanri Abeng to manage SOEs. At that time, Tanri Abeng preferred to implement SOHC as a means of paying off the debts, but this was hampered by a lack of legislation supporting its implementation.
Currently, SOEs are showing an era of their revival after a series of corporate health and recovery programs were carried out after the 1998 Indonesian economic crisis. There are three indicators of the rise of SOEs at this time: (i) the support and involvement of SOEs in a number of national strategic projects; (ii) the increasing number of SOEs expanding their regional operations; and (iii) the increasing number of SOEs that has been internationally recognized for their performance. Nevertheless, these three indicators are still not enough, because the questions about "what is the best format for SOEs?" are often heard. [5]
The rapid progress made by SOEs and their holding companies is not yet complemented by specific regulations in Indonesia's legislation Although some parts of the Company Law contain regulations related to the concept of holding companies, such as regulations on mergers, consolidations, and acquisitions that can lead to the formation of a holding company, this Company Law is more directed to the concept of a limited liability company as a single company. State-Owned Holding Companies (SOHCs) are run under the SOEs Law in which SOHCs are defined as the companies carrying out the same duties as SOEs as referred to Article 33 of the 1945 Constitution.
The description above leads to two points of conclusion. First, SOHC is one of the programs prioritized for its development by the Indonesian government to advance the economy and serve as Indonesia's frontline to face the era of globalization. Second, although not specifically regulated in the law, Indonesia's SOHC, whose implementation is based on the Limited Liability Company Law and the SOEs Law, carries out the mandate mentioned in Article 33 of the 1945 Constitution for the welfare of the Indonesian people.
The Covid-19 pandemic that hit Indonesia has caused suffering and loss to the community. The Indonesian government together with all its institutions is trying to minimize and restores the damage caused by the Covid-19 pandemic. SOHC in every sector plays its role in helping the community facing the impact of the Covid-19 pandemic.
Through the Circular of the Minister of State-Owned Enterprises of the Republic of Indonesia Number SE-1/MBU/03/2020 concerning Precautions regarding the Spread of Corona Virus Disease 2019 (COVID-19) (hereinafter referred to as "SE BUMN") addressed to the Directors of SOEs, the Board of Commissioners of SOEs, and the SOEs Supervisory Board, the Minister of SOEs requires SOEs to participate in protecting the community by providing services in accordance with their respective fields. In the SE BUMN, there are at least 8 (eight) points of the mandated form of public services, namely:
1. SOEs strengthen coordination with other Ministries/Agencies, local governments, hospitals, and nongovernment institutions for preventive action as well as handling and evaluating customers with suspected COVID-19.
2. SOEs engaged in hospital services provide a crisis center and prepare isolation rooms during the COVID-19 outbreak.
3. SOEs engaged in pharmacy maintain the stock availability and maintain the price stability for personal protective equipment (PPE), antiseptic fluids, or sanitary equipment.
4. SOEs engaged in food maintain the availability of food stocks and staples and maintain the distribution during the COVID-19 outbreak.
5. SOEs engaged in Land, Sea, and Air Transports and Logistics improve supervision and prepare flow of emergency handling at every airport, station, terminal, and seaport for suspected or confirmed COVID-19.
6. SOEs engaged in Oil and Gas and Energy maintain the availability of fuel, gas, and electrification needed by the public.
7. SOEs engaged in Fertilizer maintain the stock availability of fertilizers and distribute them to farmers.
8. SOEs engaged in Tourism maintain and provide sanitation equipment for visitors and prepare an emergency response for suspected/confirmed COVID-19.
One of the SOHCs, Perkebunan Nusantara (PTPN), donated funds for Holiday allowances and corporate social responsibility (CSR) programs worth IDR 29,000,000,000.00 (twenty nine billion rupiahs) to help fight Covid-19. The donations were in the form of medical and non-medical equipment for hospitals, medical personnel, and direct distribution of food packages to the public. The funds of IDR 18,100,000,000.00 (eighteen billion one hundred million rupiahs) were allocated for the conversion of 18 hospitals out of a total of 26 hospitals owned by the PTPN Group. In those 18 hospitals, the PTPN Group provided 835 beds and 125 Intensive Care Units (ICU) to serve and treat Covid-19 patients in various regions in Indonesia. [6]
The 18 hospitals are spread across various regions in Indonesia, including Bangkatan Hospital (Binjai), Tj. Selamat Hosptal (Langkat), Balimbingan Hospital (Simalungun), Pabatu Hospital (Serdang Bedagai), Laras Hospital (Simalungun), GI Tobing Hospital (Deli Serdang), and Sri Pamela Hospital (Tebing Tinggi) in North Sumatra Province; Subang Hospital (Subang-Jabar), HVA Toloeng Redjo Hospital (Kediri), Medika Utama Hospital (Kanigoro-Blitar), Lavalette Hospital (Malang), Gathoel Hospital (Mojokerto), Wonolangan Hospital (Probolinggo), Kaliwates Hospital (Jember), Djatiroto Hospital (Lumajang), Jember Klinik Hospital (Jember), Bhakti Husada Hospital (Banyuwangi), and Elizabeth Hospital (Situbondo) in Java island.
Besides being allocated to add medical and non-medical equipment such as PPE, hand sanitizers, masks, forehead thermometers, special ambulances to transport covid-19 patients, CSR funds are also used for food packages distributed to people affected by the pandemic throughout Indonesia, especially around the PTPN Group operating area and the holding offices in Jakarta. In addition, the activities of spraying disinfectants and making sinks and torrents for hands washing in public and social facilities in various regions are also carried out by each subsidiary of PTPN.
SOHC engaged in pharmacy has a strategic role by collaborating with national research institutes of higher education in developing vaccines, drugs, and diagnostic tests as well as seeking potential collaborations with foreign research institutes. SOHC engaged in pharmacy was just established at the end of January 2020, composed of Bio Farma as the parent company and PT Kimia Farma, Tbk and PT Indofarma as subsidiaries.
Bio Farma has successfully produced its own Real-Time Polymerase Chain Reaction (RT-PCR). The success in producing the RT-PCR further strengthens Bio Farma as a lifescience company that produces not only vaccines but also lifescience products such as biosimilar and diagnostic kits. This RT-PCR-based test kit has met the Golden Standard in examining Covid-19 and determining the diagnosis of positive or negative status from swab samples of patients suspected of being exposed to Covid-19.
As of July 2020, Bio Farma has produced 140 thousand kits. 100 thousand of them have been donated to 45 laboratories throughout Indonesia based on the BNBP (Indonesian National Board for Disaster Management) recommendations. In addition to producing Real-Time Polymerase Chain Reaction (RT-PCR) to fulfill the domestic needs, especially during the COVID-19 pandemic, convalescent plasma therapy, and biosafety Level-3 (BSL-3) mobile laboratory, Bio Farma has also prepared other scenarios to deal with the Covid-19 outbreak, such as developing Covid-19 vaccine and preparing Viral Transport Medium (VTM).
The latest news on the development of the Bio Farma vaccine with Sinovac reports that Phase 3 of the clinical trial runs smoothly with no reports of serious adverse events following immunization (AEFI) incidents due to the injection of a covid-19 vaccine candidate. Moreover, as of 9 October 2020, 843
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volunteers had received the second injection and 449 volunteers were in the blood collection stage after the second injection (entering the monitoring period).
PT Kimia Farma Tbk has been able to produce drugs for the treatment of Covid-19, namely Favipiravir for Covid-19 treatment. This is the first drug product in Indonesia that is developed by SOEs. This product has received a distribution permit number from the Food and Drug Administration (BPOM) and will be distributed following the government regulations. PT Kimia Farma Tbk and its subsidiary, PT Phapros Tbk, have also succeeded in producing several drugs for the treatment of Covid-19, such as Chloroquine, Hydroxychloroquine, Azithromycin, Favipiravir, Dexamethasone, and Methylprednisolone.
Meanwhile, other members of SOHCs engaged in pharmacy, PT Indofarma Tbk, along with all its business groups (companies) support the government's efforts to suppress the spread of Covid-19 in the country through various types of products, including Oseltamivir 75g capsules which is a leading antiviral and currently becomes a reference of a COVID-19 treatment protocol in various hospitals. As a product with a Domestic Content Level certificate of 40.06%, Oseltamivir 75g capsule has been produced by PT Indofarma Tbk, with a production capacity of 4.9 million capsules per month. Such production capacity should be able to meet the needs of the Indonesian people. Also, Desrem™ Remdesivir 100mg is being marketed as a drug used for inpatients with Covid-19 in moderate-severe conditions by one of SOHC subsidiaries engaged in pharmacy. [7]
Pertamina as the SOHC engaged in oil and gas formed a Covid-19 Task Force immediately after the news of the virus spread. In addition, the medical team, the asset team, and the Health, Safety, Security, and Environment (HSSE) team were also involved in the Covid-19 Task Force. This service can be used by all employees and families of Pertamina in all of the operational units, Marketing Operation Region (MOR), Refinery Unit (RU), subsidiaries, and Pertamina affiliates throughout Indonesia.
Pertamina also opens communication channels through Call Center 135 for the employees and their families who want to consult or get information about Covid-19. Pertamina has made various efforts to prevent and minimize the spread of Covid-19 by holding Health Talks in several operating units and subsidiaries.
Pertamina Central Hospital, although not a referral hospital for Covid-19 patients, participates in handling the pandemic by separating 50% of the bed capacity from non-covid patients and implementing strict health protocols. [8]
Perusahaan Gas Negara (PGN) as a member of SOHCs engaged in oil and gas has implemented four programs to deal with the Covid-19 pandemic. First, PGN implements the Decree of the Minister of Energy and Mineral Resources of the Republic of Indonesia in 2020 regarding the ratification and conversion of the Diesel Engine Power Plant owned by PLN (state-owned electricity company) in 52 locations. Second, PGN seeks to supply more gas as energy for the existing plants in the Pertamina oil refinery through Pertamina refinery gasification. Along with the Pertamina refinery development master plan, PGN makes preparations to ensure the availability of additional supplies. In addition, PGN also simplifies the supply pattern and integrates the pipeline network from Sumatra to Java by connecting the South Sumatra West Java pipeline with the West Java Area pipeline.
Third, PGN carries out a strategic household network program implemented either through an independent program or through the State Revenue and Expenditure Budget (APBN). Under this program, households and small-scale entrepreneurs can get cheap energy which can also reduce government gas import subsidies. Fourth, PGN carries out the government's assignments to supply gas at a special price. With cheaper gas, the industrial sector can continue running its business. [9]
In the financial sector, members of the SOHCs engaged in financial services, PT Bank Mandiri Tbk and PT Bank Negara Indonesia Tbk (BNI), made adjustments to the policies and credit processes for the Micro, Small, and Medium Enterprises (MSMEs) segment. The goal is to maintain the business continuity of MSME players during the crisis due to the Covid-19 pandemic. This relaxation is carried out by observing the prudential banking principles and is valid until the conditions back to normal based on the government's decision.
For MSME players who apply for additional credit facilities of up to 20%, additional collateral is not required. This policy is given primarily to the micro-segment. Bank Mandiri also facilitates the process of extending the term of credit for 6 months by providing provision and administration fee relief.
Bank Mandiri will also prepare to relax the credit restructuring process in line with the Financial Services Authority's plan to issue an economic stimulus policy. The relaxation that has been prepared by Bank Mandiri includes early restructuring for debtors genuinely in need. The restructuring process will be made easier and will be subject to postponement of principal and interest payments. [10]
PT Bank Rakyat Indonesia (Persero) Tbk states that it will review the potential for another reduction in loan interest rates in line with the government's steps to provide relaxation to MSMEs. The evaluation of the potential for a reduction in loan interest rates is continuously carried out to encourage the continuity of the debtor's business by taking advantage of relaxation provided by the regulator.
In BNI, the relaxation is intended to provide an earlier opportunity for restructuring to debtors genuinely in need. In addition, the issuer with the BBNI code also facilitates the restructuring process, whether through a model of obligation postponement, principal payment, and or extension of the credit tenor.
SOEs are also involved in the PEN (National Economic Recovery) program: distributing credit to MSMEs and cooperatives and providing working capital credit guarantees. The credit to MSMEs and cooperatives is channeled through UMi (Ultra Micro) credit by PT Pegadaian, PT PNM, and PT Bahana. In addition to UMi with a ceiling of up to IDR10,000,000.00 (ten million rupiahs), the people's business credit (KUR) is also distributed by the state-owned banks with a ceiling of up to IDR 500,000,000.00 (five hundred million rupiahs). The KUR interest rate is very low because it is subsidized by the government.
Working capital credit guarantee for MSMEs is also implemented by PT Jamkrindo and PT Askrindo with a loan ceiling of up to IDR10,000,000,000.00 (ten billion rupiahs) and subsidized interests. Meanwhile, for corporations, the working capital credit guarantee starting from IDR1,000,000,000.00 (one billion rupiahs) to IDR1,000,000,000,000.00 (one trillion rupiahs) is implemented by the Indonesian Export Financing Agency (LPEI) and PT Penjaminan Infrastruktur Indonesia (PII). The two institutions are the special mission vehicles (SMV) under the Ministry of Finance that have a type of sovereign guarantee and are supported by the increased financial capacity through State Capital Participation.
In the food-related sector, the Ministry of SOEs combines Perum Bulog with PTPN and PT RNI (Rajawali Nusantara Indonesia) to promote the formation of a consolidated food industry chain in SOEs, stabilization of food availability, and price stability in the market. In the transportation sector, PT Garuda Indonesia, PT Angkasa Pura, PT Kereta Api Indonesia, PT Djakarta Passenger Transport, and other SOHCs engaged in transportation have certainly been greatly affected by this pandemic. However, it does not prevent them from providing public services. One of the efforts that can be done is to create a social distancing protocol following the government instructions. [11]
Pupuk Indonesia Group as a company that produces fertilizer and is responsible for the availability of fertilizer provides a stock of 963,958 tons of subsidized fertilizer consisting of 497,274 tons of Urea, 223,963 tons of NPK, 85,910 tons of SP-36, 103,653 tons of ZA, and 53,159 tons of organic fertilizer. The total stock is 3 times higher than the previously stipulated amount (274,931 tonnes). In the tourism sector, the well-known SOEs are PT Hotel Indonesia Natour, PT Taman Wisata Candi Borobudur, Prambanan, Ratu Boko, PT Indonesia Tourism Development Corporation, and PT Jakarta International Hotels Development Tbk. This sector is the most affected sector due to the Covid-19 pandemic besides the transportation sector. In addition to its being responsible for reviving tourism in Indonesia, the companies provide health protocols according to the instructions defined by the government and ensure that the State of Indonesia is secure to visit. [12]
Another proof of public service is a subsidiary of PT Telekomunikasi Indonesia (Persero) Tbk., PT Telekomunikasi Selular (Telkomsel), provides credit and internet quota subsidies with a total value of up to IDR1,700,000,000,000.00 (One Trillion Seven Hundred Billion Rupiahs) per month, especially for the needs of online schools for educators, students, and university students affected by the COVID -19. Another contribution was made by PT Perusahaan Listrik Negara (PLN) by providing free electricity assistance to 24 million of 450 VA customers, as well as a 50% (fifty percent) discount on electricity to 7.7 million 900 VA customers to help the most affected communities and MSMEs. [13]
As of 24 October 24, 2020, 80.113% of the patients confirmed positive for Covid-19 or a total of 309.219 patients in Indonesia have been cured. However, other effects that have occurred due to the pandemic have not been cured. Unemployment, lower purchasing power, crime, barriers to education, and hampered economic activity are impacts that must be recovered. Communities and governments must continue working together to survive a pandemic situation and prepare for recovery from the effects caused by the Covid-19 pandemic.
CONCLUSION
State-Owned Holding Companies (SOHC) carry out the function of Public Service Obligation during the Covid-19 pandemic. The profit-oriented function is put aside to maintain and prosper the community according to the mandate of Article 33 of the 1945 Constitution. The actions taken to deal with the impact of the Covid-19 pandemic are focused on health issues, social safety, and people's purchasing power maintenance or matters related to the business sectors.
ACKNOWLEDGEMENT
My special gratitude is addressed to my promoter, Prof. Dr. Bismar Nasution, SH., MH and co-promoters Prof. Hikmahanto Juwana, SH., MH., Ph.D and Dr. Mahmul Siregar, SH., M.Hum, who help bring out the ideas of this research. I also thank Prof. Dr. Ningrum Natasya Sirait, SH., M.Li, who always encourages and guides the author in completing this research.
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