The House of Representatives (DPR) has asked the government to improve the efficiency and effectiveness of state-owned enterprises (SOEs) tasked with managing public service obligations (PSO), emphasizing that massive state subsidies must translate into real benefits for the public.

The call was delivered by House’s Finance Commission XI Chair Mukhamad Misbakhun following a hearing with the Danantara Investment Management Agency and Finance Minister Purbaya Yudhi Sadewa at the parliamentary complex on Thursday, December 4, 2025.

He stressed that the discussion was not focused on disputes over unpaid compensation to SOEs. Instead, lawmakers sought to refine the broader framework of state subsidies to ensure stronger public impact.

“We discussed SOEs related to PSO, especially those responsible for distributing subsidized goods and services,” he said.

Misbakhun noted that the state allocates hundreds of trillions of rupiah every year for various subsidies. With such a large financial commitment, he said, SOEs executing PSO mandates must guarantee the funds are used efficiently and reach the intended beneficiaries.

“We cannot let the people feel the state is absent when in fact the government spends such enormous amounts. Accuracy, efficiency, and effectiveness … those are our targets,” he said.

The commission highlighted several SOEs that play central roles in delivering subsidized goods and services, including, Pertamina (fuel and gas distribution); PLN (electricity subsidies); Pupuk Indonesia (fertilizer distribution); Pelni, ASDP, and KAI (transportation services); Perum Bulog(national food reserves).

Bulog, Misbakhun said, will also be included in the development of a new management framework for food-stock reserves.

To ensure subsidies are better targeted, lawmakers have granted the Finance Minister full authority to redesign the mechanism.

“We have given the Minister of Finance the mandate to redesign it. That is our decision,” Misbakhun said.

He clarified that the commission’s discussions and oversight are focused solely on SOEs managing subsidies and compensation schemes ‒ not on SOEs at large.

The latest push from the House comes as the government continues efforts to improve fiscal transparency, enhance service delivery, and ensure state spending yields measurable public benefits.