Jakarta. State-Owned Enterprise (SOE) Minister Erick Thohir revealed on Monday that seven out of 47 state-run companies remain unprofitable.

"We still have seven SOEs that need to work hard to turn a profit over the next few years," Erick said during a hearing with a House of Representatives commission at the legislative complex in Jakarta.

One of the companies, Krakatau Steel, continues to struggle under a significant debt burden that hampers its profitability. While the Cilegon-based steel manufacturer has undergone debt restructuring, a major fire in 2019 further strained its financial position, Erick explained.

Biofarma, a state-owned pharmaceutical company, is another on the list. Erick attributed its losses to the significant costs incurred during the production and distribution of free COVID-19 vaccines and the substantial debts accumulated by its subsidiaries, Indofarma and Kimia Farma.

State construction firms Wijaya Karya and Waskita Karya also face financial difficulties, heavily relying on government funding to sustain operations amid high operational costs and a decline in project orders.

Erick noted that the government is currently in the process of liquidating the state-owned insurer Jiwasraya, which suffered from a massive corruption scandal and an inability to settle insurance claims.

Meanwhile, the low-cost housing provider Perumnas continues to struggle with profitability, and state printing company PNRI faces severe revenue challenges due to a lack of orders, Erick added.