Urgency of Changing Paradigm for Manpower-based State Owned

Enterprises

Christian Orchard Peranginangin

, Bismar Nasution

and Sunarmi

Student of Doctoral Program in Law, University of Sumatra Utara, Jl. Abdul Hakim No. 4, Medan, Indonesia

Lecturer of Doctoral Program in Law, University of Sumatra Utara, Jl. Abdul Hakim No. 4, Medan, Indonesia

Keywords: Manpower-based, State-owned Enterprise, Urgency of Changing Paradigm.

Abstract: Manpower as the front line of the company has placed it as one of the important elements in the company.

State-Owned Enterprise of Limited Liability Company ( Ltd SOEs as one of business established by the

State has significant role in national economic development. The harmonious relationship between

Employees and Employer (Ltd SOE) becomes an important parameter in achieving the objectives of the

establishment of these SOEs. Research methodology in this writing is normative juridical. The result of the

research shows that state-owned corporation in carrying out its corporate action has not yet placed

manpower as one of stakeholder or strategic partner. The various rules of the company regulating the

existence of manpower still make it as a variable that must be controlled. In conclusion, that both UUK and

various rules related to the management of state-owned enterprises must change the management paradigm

to makes the workforce as a base of corporate power in achieving the SOE's objectives which are admittedly

complex.

1 INTRODUCTION

In the national economic system, SOEs play a role in

producing goods and / or services needed in order to

realize the maximum public welfare. The role of

SOEs is considered increasingly important as a

starting point and / or pioneer in business sectors

which are still not yet in demand due to lack of

interest in private business. Besides, SOEs also have

strategic roles as implementers of public services,

balancing great powerful business sectors, and

assisting in the development of small businesses/

cooperative. Thus the achievement of public welfare

will be closely related with the existence of a SOE.

The SOEs become a tool to enable to achieve the

purpose of the State.

Process of establishment of a Country cannot be

separated from the factors of desire and interests of a

group of people who grow due to mutual

relationship between human beings to build the

country. Therefore, the country that has been

established constitutes an organization consisting of

a group of people having their own patterns to

achieve certain goals, including efforts to realize and

ensure happiness or welfare both spiritually and

materially for members of the organization or its

people. According to Sjahrir, the establishment of a

state business in the form of state enterprises is

based on the common assumptions that there are

always sectors or fields considered significant, vital,

and strategic for the state and control the livelihood

of the people so that the management or

sustainability of these sectors cannot be just handed

over to private business (Sjahrir and Ikhsan, 1994).

The sustainability of SOEs is currently regulated

by Law no. 19 Year 2003 concerning about State-

Owned Enterprises. One of the considerations that

this Law is enacted is that SOEs have important role

in the implementation of national economy in order

to realize the public welfare. However on its

journey, the role of SOEs in the national economy to

realize public welfare is not yet optimal. In their

business activities, SOEs have two business models,

namely the Limited Liability Company (Persero)

and Public Corporation (Perum). Both of these

business models have different business

mechanisms. In SOEs of Limited Liability Company

(Persero), shares from external parties are welcome,

but State has the authority to have the majority of

shares with minimum 51% shares of all company

shares. Meanwhile, for the SOEs of Public

Peranginangin, C., Nasution, B. and Sunarmi, .

Urgency of Changing Paradigm for Manpower-based State Owned Enterprises.

DOI: 10.5220/0010092916351642

In Proceedings of the International Conference of Science, Technology, Engineering, Environmental and Ramiﬁcation Researches (ICOSTEERR 2018) - Research in Industry 4.0, pages

1635-1642

ISBN: 978-989-758-449-7

1635

Corporation (Perum), all shares are entirely owned

by Corporation.

SOE of Limited Liability Company (Persero) is

business entities that produces goods or services and

have a component of manpower which cannot be

separated in business activities. Quality relationship

between Employers, in this case is the management

of the company, and employees will create a

conducive situation and a synergistic that will

improve the performance of company (Sutedi,

2009). Convenience of work is the main parameter

in achieving the goal of creating a conducive

company. Thus it is not difficult for a company to

achieve its goals if the relationship between

employees and Management running harmoniously.

The position of employees/ workers in industrial

relationship play the main role, namely when the

employees / workers are absence in a production

process, it will cause the production process will

neither run well and smoothly nor achieve its goals

(Farianto, 2014). However, the mutual needs

between employers and workers will not meet in

harmony due to disharmony when each party facing

each other and claiming that each party has plaid the

most important role and giving the most contribution

for the success of the company (Priambodo, 2004).

The nature of relation between employee /

workers and employer itself is basically

contradictory, where on the one hand it needs

collaborative relations, but on the other hand there

are potential tendencies that can lead to conflict

(adversarial relations). At the time of the signing of

an individual contract, both employees / workers and

employers are legally equal before the law in

accordance with the principle of equality before the

law, but sociologically the employer stands on a

higher socioeconomic position than the employees /

workers (Rajagukguk, 2000).

The above description confirms the existence of

a legal relationship between the Employer (SOEs of

Limited Liability Company) and the employees /

workers as a consequence of business activities

undertaken by SOE Persero in its capacity as a

private legal entity and public dimensioned as well.

[9]The relationship is supposed to have a paradigm

that is able to build the strength of the Indonesian

economy, because the establishment of SOEs is

managed to be a locomotive of the State economy.

The problem in this research is how the paradigm

of SOEs (Persero) Management can make

Manpower (Employees / Workers) and strategic

partner of company

2 RESEARCH METHODOLOGY

Research done for this writing constitutes normative

(Ibrahim, 2006) legal research (Soemitro, 1988)

which analyzes legal materials (Soekanto dan

Mamudji, 2011) and then conducts library research

that in return, all of these are connected to one-

another in such a way to determine and solve the

problem that have been formularized.

3 RESULT AND DISCUSSION

3.1 SOE of Limited Liability Company

(Persero) is a Legal Entity

SOEs in performing corporate action put forward the

principles applicable to limited liability companies

as stipulated in the Law on Limited Liability

Company (PT). PT is a Legal Entity, which is a

stand-alone legal entity (persona standi in judicio)

which has natures and characteristics that are

different from other businesses. Rudhi Prasetya

points out that the term Limited Liability Company

used in Indonesia today is previously known as

Naamlooze Vennotschap, abbreviated as NV. How

come the term "Limited Liability Company" is then

used and abbreviated to PT but the origin cannot be

traced clearly? (Prasetya, 1996). Ridwan Khairandy

confirms that the term has become standard in the

community and even has been standardized as well

in various laws and regulations, such as Law no. 40

Year 2007 concerning about Limited Liability

Companies (previously regulated in Law No. 1 Year

1995) as well as Law no. 8 Year 1995 concerning

about Capital Market (Khairandy, 2009).

As a legal entity, Limited Liability Company can

perform legal acts in the form of authorization, make

agreements, issue regulations to be applied internally

in the company, and can even violate the law. From

this legal Limited Liability Company bear a legal

responsibility, not just responsibility for civil

liability but also criminal liability done by company.

Legal Entity which constitutes a partnership of

capital, where the authorized capital is divided into

shares of limited liability companyas a legal entity,

has its own property. This separate property is a

treasure of a unity which can be registered in its own

name. Ownership is managed in the form of shares

that can be transferred to anyone.

Authentic definition of Limited Liability

Company can be seen in Article 1 number (1) of

Law No. 40 Year 2007 concerning about Limited

ICOSTEERR 2018 - International Conference of Science, Technology, Engineering, Environmental and Ramiﬁcation Researches

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Liability Company (UUPT), it is mentioned that

Limited Liability Company, hereinafter referred to

as the company, is a legal entity which constitutes

capital alliance, established under the agreement,

conducting business with the authorized capital

wholly divided into shares and fulfilling the

requirements stipulated in law and implementing

regulations. Elements attached to the Limited

Liability Company can be described based on

definition, namely: (1) Limited Liability Company is

a legal entity; (2) Consists of capital alliance; (3)

Established by an agreement; (4) Conducting

business activities; (5) Capital consists of shares.

Yahya Harahap states that the Company as a

legal entity is a creature of the law, which has power

and its capacity since the law is given to it, and is

authorized to act and perform in accordance with the

authority granted in Articles of Association. Besides,

it also has a regulated power (express power) such as

to own property, to sue and to be sued on behalf of

the company. Nevertheless, there is also an implicit

power, which is authorized to do whatever it takes as

long as still reasonable and important for the

company, such as taking control and transferring,

lending money, giving donations, and so forth

(Harahap, 2011).

Basically a legal entity is a body that can have

the rights and duties to commit an act like human

beings do, such as to have its own wealth, to sue and

to be sued in front of the court. These legal entities

are human effort in such a way made up to found

bodies that have the same status, position, authority

as human beings. Therefore, since this body is a

made-up effort of human beings, then this body is

referred to as an artificial person (Harahap,2011). In

the law, the term “person” includes a personal

creature, namely human being (natuurlijk person)

and legal entity (persona moral is, legal person, legal

entity, rechtsperson). Both are the subject of law,

therefore both bear rights and legal obligations. In

other words they have legal rights / and / or

obligations recognized by law (Satrio, 1999).

The management of state-owned enterprises in

Indonesia places its position as a private legal entity.

As a business entity in the form of a Limited

Liability Company, BUMN has characteristics as

follow: (1) the status is as a private legal entity; (2)

the relationship of business is arranged and managed

by civil law; (3) the meaning of his business is to

foster profits; and (4) the capital as a whole or partly

belongs to the state from separated state property

(Hidayat and Soeratin, 2005).

In the perspective of legal theory, the meaning of

"separated state property" refers to interpretation that

SOE is a legal stand-alone / independent entity

whose responsibility and wealth are separate from

the owner (in this case is the State). It is generally

accepted that a legal entity has the following

characteristics: (Ali, 1999)

 association of people (organizations);

 may perform legal acts (rechtshandeling) in

legal relationships;

 has its own property separated from the

wealth of its founder (owner);

 has board of Management / administrators /

caretakers;

 have rights and obligations; and

 may sue or be sued before the court.

3.2 Legal Relations and Employees

Enterprises (SOE Persero)

The role of SOEs is still very significant for the

development of national economy (Sulaiman, 2011).

This includes carrying out the development of

undeveloped and untapped sectors by private

companies. Thus many assignments from

government are given to SOEs to implement

pioneering development projects that finally bring

out and raise the term “BUMN/ SOE” as a

development agency with all its strength and weak

points as well as the various controversies following

after (Yasin, 2012).

As a company organization, the aspect of

manpower cannot be separated in the management

of SOEs Persero. Manpower is the front line of a

company in achieving the ideals of the company.

Manpower is a supporting factor in economy of a

country. To promote the economy of a country,

quality relationship between Employer (board of

Management) and Employees is required. A quality

relationship will create a conducive situation and a

synergicity that will improve the company's

performance. Convenience of work is the main

parameter in creating a conducive company, so it is

not difficult for a company to achieve its goals if the

relationship between Employer and Employees

running harmoniously.

Employees / Workers are interpreted as everyone

capable of doing work to produce goods and / or

services either to meet their own needs or for the

community. Employee/Workers any person who

works by receiving wages or other forms of

remuneration. Meanwhile, an employer is an

individual, management, a legal entity, or other

entity that employs employees / workers by paying

wages or other forms of remuneration.

Urgency of Changing Paradigm for Manpower-based State Owned Enterprises

1637

Meanwhile, the enterprise is any form of

business which is legal entity or not, owned by

individuals, owned by partnership, or owned by a

legal entity, whether private or state-owned,

employing workers / labors by paying wages or

other forms of remuneration, thus SOEs of Limited

Liability Company (Persero) is included in the

category of companies based on Manpower Act

(UUK), while manpower employed by the state-

owned enterprises Persero in business management

are categorized as workers.

The definition of the first employment agreement

is mentioned in the provisions of Article 1601 a

Civil Code which reads the Working Agreement is

an agreement whereby one party is the worker, binds

himself to under the command of the other party

who is the employer, for a certain time, performs the

work by receiving wages. The phrase "under the

command of the other party" states that there is a

relationship between the worker and the employer

that is the relationship between the subordinate and

the superior, the employer gives the order to the

worker to do certain work. The authority to manage /

instruct distinguishes the employment agreement

from the other agreement. According to R. Imam

Soepomo, the employment agreement is an

agreement in which the first party, the laborer, binds

himself to work to the other party by receiving

wages the employer, binding himself to hire the

laborer by paying wages (Soepomo, 1968)

Subekti, meanwhile, has his opinion that the

employment agreement is an agreement between a

worker and an employer, in which the agreement is

marked by the characteristics; including certain

fixed wage or salary and confirming the working

relation the pervert (Dutch "dierstverhanding") that

is a relationship based on which one party (the

employer)is entitled to give orders that must be

obeyed by the other party (Subekti, 1977). The

principle that stands out in the employment

agreement is the relationship between a worker to

another (employer) to work under orders by

receiving wages. In the principle of an employment

agreement there is an element of a work agreement

that can be considered valid and the consequence

has been regarded as the Law for those who make it,

in each agreement there are two kinds of treaty

subject, namely: (Halim et al., 2001) (1) A human

being or a legal entity that has the responsibility of

obligation to for something; (2) A human being or

legal entity that obtains the right to the performance

of that obligation

Manpower Act is at the top position concerning

with relations between employers and workers, in

this regulation the employment relationship occurs

because of an employment agreement between

employers and workers (Peranginangin, 2017). In

Manpower Regulation, the employment relationship

is defined as the relationship between employers and

workers/ laborers based on employment agreements,

which have elements of work, wages, and orders

(Nedeng, 2003).

3.2.1 Work

In employment agreement, there must be the Work

granted and performed by the worker him / herself.

Which work is the work done by the work itself,

must be based on and referred to the employment

agreement. Workers who carry out work on the basis

of the employment agreement are basically obliged

to carry out their own works since if this party is free

to carry out the work by themselves or to impose the

work on others, it will be difficult to say as the

implementation of the employment agreement. This

is already stipulated in Article 1603 of the

Indonesian Civil Code which reads that Labor must

perform its own work; only with the employer's

permission he can have a third person replacing him.

3.2.2 Wages

Wages constitute workers' rights received and

confirmed in the form of money as compensation

from employers to workers stipulated and paid

referring to a contract of employment, agreement or

statute, including allowances to workers and their

families for the work and / or service that has been

and / or will be done. According to Edwin B. Filippo

in the paper entitled "Principles of Personal

Management" he states that wage is the price for

services that have been received or given by others

for the benefit of a person or legal entity (Nedeng,

2003).

3.2.3 Orders / Instructions

In the working agreement, this element of command

holds the main role, because without any element of

command, it is not a work agreement. With the

element of the command in the employment

agreement, the positions of both parties are not

equal, namely one party is on higher above (the

instructing party) while the other is on the lower

position (the instructed). This unequal position is

called a subordinate relationship and some call it

official relations. Therefore, if the positions of both

parties are not the same, or it can be said that there is

subordination, there is a working agreement. On the

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other hand, if the positions of both parties are equal

or there is coordination, than there is no employment

agreement, but the other agreement (Khakim, 2014).

The legal relationship between employers and

the workforce is essentially unequal if we review its

arrangements in the Civil Code governing their

relationship. Of the 32 Articles contained in Book III

in Chapter-7A, there are 27 Articles containing

employers' obligations that limit the dominance of

their powers. While the labor obligations are only

regulated in 5 articles (Khakim A 2014). In other

words, in an employment relationship the employer

has more authority than the right possessed by the

workforce (Uwiyono, 2001).

The above description can be interpreted that the

workers have the authority only to what has been

arranged in the agreement. As we know that the

employment agreement contains more about the

rights and obligations of labor in terms of income

and how to perform disciplinary deeds in work.

However with regard to company policy, permanent

workers are excluded from reaching an acceptable

decision for all elements of the company, including

workers (Moeljono, 2004).

3.3 Regulation Has Not Placed

Employment as a Strategic Partner

Company

As an organization, SOEs do have unique natures.

On the one hand, as a development agency, it is

mandated to implement government policies and

programs, while on the other hand it must continue

to function as a commercial business unit operating

on the basis of healthy business principles. In some

ways the "ambivalence" of the two functions is often

less able to walk in harmony, even if there is a

possibility of confusion of perceptions for the Board

of SOE management. This can cause in the difficulty

of management in determining strategic and

operational measures.

In the context of a company, there are some

opinions that assume that the workforce is only an

external factor and has the same position as the

customer of the supplier or the customer of the buyer

that serves as a supporter of the company's

continuity, not as an internal part of the company

which is an inseparable part or as a constructive

element making the company.

The Law on Limited Liability Company as a

reference for state-owned companies in managing

SOEs has not placed the workforce as a strategic

partner in the management of the business of the

country. Although the Law on State-Owned

Enterprise (BUMN) has provided space for the

management of SOEs to refer to Manpower Act no.

13 Year 2003 dealing with matters relating to

employees (read: labor) as a worker of SOEs. The

provisions of Article 87 paragraph 1 of the SOE Act

stipulates that SOEs employees are state-owned

workers whose appointments, dismissals, positions,

rights and obligations are stipulated under a mutual

work agreement in accordance with the provisions of

manpower legislation.

Other provisions in the SOE Act and Limited

Liability Companies only regulate the consequences

arising from the company in the event of a merger,

consolidation, acquisition or separation. Article 126

of the Limited Liability Company Law provides that

the legal act of Merger, Consolidation, Takeover or

Separation shall take into account the interests of the

Company's employees. Likewise with the Law on

SOEs, Article 65 stipulates that in conducting

mergers, consolidations, acquisitions, and

dissolution of state-owned enterprises SOE interests

should consistently be taken into concern. In

addition to some of these provisions there are

several other matters involving labor, but not

strategic matters of policy making, such as the sale

of shares that are prioritized to the workforce,

authorization to deal with third parties.

Some of the arrangements relating to the

existence of the workforce above do not provide a

deeply sufficient space for the workforce as a

strategic asset of the company. Manpower is only

the last object that makes it "downstream" to

company policies, without knowing the origin or the

basis for thinking of a policy enacted. This condition

becomes an obstacle for companies, especially state-

owned limited company in achieving company

goals, limited liability SOEs mandate the

constitution to be able to become a beneficial

company and profitable for the realization of public

welfare.

The State-Owned Enterprises Act allow the

employees to establish Labor Union. Article 87

paragraph 2 and 3 of the SOE Act states that State-

Owned Enterprises can form unions in accordance

with the provisions of legislation. And with the

existence of such unions, employees are obliged to

maintain security and orderly condition at

workplace, and improve the discipline of work. In

this provision, it is not mentioned that the existence

of unions to protect the rights of employees, but it is

understood that the provisions of the Labor Union

Act is based on freedom of association.

Law no. Law No. 21 Year 2000 on Labor Unions

is based on the consideration that Labor unions are a

Urgency of Changing Paradigm for Manpower-based State Owned Enterprises

1639

means to propose and make their best efforts, protect

and defend the interests and welfare of workers and

their families, and to create harmonious, dynamic

and fair as well as equitable industrial relations.

Through the union, employees / workers like to have

vehicle to gather and express opinions more open

and guaranteed. Workers are protected by an

institution under the Law to become a strategic

partner of the company.

In Explanatory Notes, the Labor Union Act

explains that Workers are very important business

partners in the production process in order to

improve the welfare of workers and their families, to

ensure the sustainability of the company, and to

improve the welfare of Indonesian society in

general. In this regard, trade / labor unions are a

means of striving for the interests of the workers and

establishing harmonious, dynamic, and equitably fair

industrial relation. Therefore, Labor / Worker

Unions must have responsibility for the

sustainability of the company and on the other hand,

Employer / management must treat and place

workers / labors as partners with human dignity.

The right to associate in organization for workers

/ laborers, as stipulated in the International Labor

Organization (ILO) Convention No. 87 concerning

Freedom of Association and Protection of the Right

to Establish Organization, and ILO Convention No.

98 concerning with Application of Fundamentals of

Rights to Interrelate has been ratified by Indonesia

become part of national legislation. This became a

reference for the government to make a special

regulation for the workers to found union.

The existence of Labor / Worker Unions instead

of protecting the rights of members within the

company, it also constitutes as a means of creating

harmonious, dynamic, and equitably fair industrial

relations in accordance with applicable legislation.

This arrangement at least opens opportunities for

unions to create quality relationships between

Employers / Management and Workforce. However,

this arrangement does not firmly stipulate that

unions are one of the institutions invited to negotiate

by employers to make company policies, especially

with regard to the labor they are striving for.

As a company owned by the State, SOEs have

become a company managed under the regulations

of Limited Liability Companies. But in certain limits

the management is still regulated by SOEs

regulation as the regulation that raise SOEs.

However, arrangement related to manpower and

how it relates to decision making in companies are

not expressly regulated in both laws.

The Employment Regulation which constitute

the reference in the relationship between the

company and the SOEs employees also does not

provide more space for the workforce to get a place

in the company to express their opinions and

feedback for the application of company policies,

especially those concerning with future of the

workforce. Labor unions as a vehicle to gather and

express opinions and to protect the rights of

employees have been imposed regulation and every

activity is protected by law, but the substance also

does not provide more in terms of coordination of

policy making. Harmonious industrial relation is one

of the reasons that Union is established, but actual

technical implementation does not indicate such a

right. If the right to strike has been regulated in its

regulations, it can be interpreted that the Law has

predicted earlier that such a situation will often

occur. It should be more preventive arrangement if

in the early phase of policy making this condition is

taken into consideration. This way, "Preventive

Actions are better rather than Curative Treatments"

becomes a principle that should be applied in the

enforcement of this arrangement.

Company policies concerning the existence of

manpower and / or that related to its existence often

become obstacles in the management of the

company. State-owned Company is a legal entity in

the form of legal entity and has rights and

obligations and legal responsibility. It will be

difficult to achieve the best performance if

employing unskilled workers and without high

dedication to the company, even the problems of

industrial relations between workers and

corporations that many state-owned companies have

given a special lesson in realizing the purpose of the

establishment of the SOE. Because as a legal entity,

it is the right for stakeholders and shareholders to be

able to demand those subject to their rights.

Rights and duties are not a collection of rules or

systems, but are a balance of power in the form of

individual rights on the one side that are reflected as

the obligations on the other side. Rights and

obligations are the powers granted to a person by

law (Priambodo, 2004). For the occurrence of rights

and obligations, there must be the occurrences of

events by law connected as cause and effect. Events

that have legal consequences are legal events.

Rawls states that the original position is the

beginning of an unchanging state of affairs where

there is a guarantee that a fundamental agreement

has been reached in it is truth. This fact leads to the

term fairness as openness. This becomes clearer than

a concept of justice is more clear than others, or it

ICOSTEERR 2018 - International Conference of Science, Technology, Engineering, Environmental and Ramiﬁcation Researches

1640

can be justified by respecting it, if the rational

person in the beginning of this situation is allowed to

choose his principle above all else in the game of

justice. The concept of justice can be leveled with

the ability to accept people, and so do the symptoms.

Understanding this path through a question of justice

is fixed by working with consideration of the

problem: we must ascertain which principle that

might be reasonable to adopt by the contractual

situation. It connects to the theory of justice with

unfettered rational theory (Mertokusumo, 2005).

Internal issues arising in the body of the

company has become a matter that distracts the

focus of company to become better in the future. It is

difficult for state-owned companies to be able to

become a pillar of the Indonesian economy if

internally; there are still many problems that should

not have happened. And let us not ignore to mention

that the external issues that are already parts of the

business dynamics of a company may happen as

well, because the business is not free from the risks

that will always haunt the company.

SOEs are the national economic Implementers

that take part to determine the direction of

Indonesia's economic development in the future,

including being a prime mover of national economic

recovery ((Rawls, 1971). Therefore, policies related

to SOEs must actually and accurately give values in

order to ensure as the most possible as to establish

national-interests oriented SOEs management.

4 CONCLUSION

BUMN Persero runs its business on the field that

controls the livelihood of most people. SOEs

producing both goods and services have a

component of man power which constitutes an

integral part of its business activities. Quality

relationship between Employer, in this case the

Management of the company, and employees /

workers will create a conducive and synergic

situation that will improve the company's

performance.

Limited liability state-owned companies have

very such complex objectives that the issues of

manpower become critical matter that should get

more attention. Discussions on manpower issues

done so far tend highlight the implications for

employment and employer relations. This is due to

the lack of disharmony between the two, a different

perspective as a cause of misunderstandings that

lead to declining corporate performance. This

situation is the impact caused when the company

only makes the workforce as a variable that must be

controlled, without being involved in the decision-

making company policies.

Limited Liability State-Owned Enterprise as an

incorporated company is not only considered to have

organs as it has been regulated in the Limited

Liability Company Act. In carrying out the activities

of the company, manpower has a leading role in the

implementation of company policies. On its journey

of implementation, manpower is the matter that

Limited Liability SOEs has less reference of

regulation to shelter it. Thus, SOEs need to change

the existing paradigm that has been putting the

manpower as controlled variables (factors of

production) to be a stakeholder or strategic partners

in achieving the objective to be Limited Liability

State-Owned Enterprise applying Manpower-

Oriented Management.

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