ABSTRACT: State enterprises in
regional level (BUMD) are accepted as inefficient enterprises,especially
becoming burden fiscal. Therefore, this paper providesbackground research for
potential policies to optimize the role of BUMD in dealing to regional economic
development in East Java and discuses (i) the role of BUMD in an economic
activities, and (ii) BUMD performance. Based on the result, all BUMD owned by
Provincial Government show operating in low level of efficiency. This result
has two main implication: (i) associated with public goods, consumers should
pay expensive compensation to get public goods, (ii) BUMD appear still not
effective to influence market fluctuation. There are two suggestions to
optimize the role of BUMD. First, BUMD should improve the management to
increase economic of scale. Second, BUMD in non-strategist sector can be sold
to avoid an increases fiscal gap.
Keywords: BUMD, BCG, Strategic
Management
Penulis: Dwi Budi Santosa
Kode Jurnal: jpmanajemendd110100
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