Key drivers for successful integration of Indonesian State-Owned Holding: a Soft Systems Methodology approach

This study examines the key drivers for successful integration of Indonesian State-Owned Holdings (SOHs) using Soft Systems Methodology (SSM) integrated with the 7-S Framework. The research analyzes three categories of holdings—Full Public Service Obligation (PSO), Strategic Sector and Profit Maximization holdings—each presenting unique challenges based on their mandates. Full PSO holdings prioritize public service delivery and require performance metrics emphasizing social and economic impact over financial outcomes. Strategic Sector holdings balance national strategic interests with commercial viability, necessitating performance indicators that integrate both financial and broader economic dimensions. Profit Maximization holdings focus primarily on financial performance and operational efficiency, with minimal government intervention. Through semi-structured interviews with 15 key stakeholders and three focus group discussions, the study identifies critical challenges in governance, operational integration and performance measurement. The study proposes tailored transformation frameworks for each holding category, with specific actions across five dimensions: sectoral holding companies, subsidiaries, policymakers, creditors and consumer perspectives. The research demonstrates that successful integration requires careful calibration of governance mechanisms, cultural alignment and performance metrics according to each holding’s mandate. The findings contribute both theoretical understanding and practical strategies for improving SOH integration, highlighting the importance of category-specific approaches in achieving sustainable performance improvements.