POLICY MODEL FOR MANAGING STATE OWNED ENTERPRISE

State Owned Enterprises (SOEs) is a unique phenomenon of developing countries economy. Indonesia SOEs has come as a policy of MNC nationalisation post Independence. The policy then turn into savior of the nation's economy while in 1998/1999 crises. The next policy was turning the groups of industries into the profesionally managed corporation and become the leading national players in the global competition. The policy has been promoting by all administrations post reform, and the SOEs have a sound business performance. It raised the three questions for the next challenge: it is a need to keep the Ministry of SOEs, and how to make a perform policy on SOEs. The answer is, there is a t need o abolish the office. The second answer is there is a need to define the next mission of the SOEs. There are two critical new missions that need to be redrawn by policy makers. First, in the well-developed economy and liberalized market, SOEs act as “countervailing actor” toward market players rather than to dominate. Secondly, in the next 50 years, it is probable SOEs will be one of the principal contributors for state budget