Political Support Model for the Performance of Regionally-Owned Enterprises (BUMD) in South Sulawesi Province

Abstract

The performance of Regional-Owned Enterprises (BUMD) in Indonesia, particularly in South Sulawesi Province, continues to face structural challenges rooted in political and institutional dynamics at the local level. Dependence on government capital injections, regulatory uncertainty, and the dominance of political interests in decision-making indicate that political dimensions remain a determining factor in regional economic effectiveness. In institutional politics, this dissertation seeks to explain how political power, regional institutions, and economic interests interact in shaping political support for the performance of regional-owned enterprises (BUMDs). This study employs a qualitative approach with a case study strategy on PT Sulsel Citra Indonesia (PT SCI) as the primary unit of analysis. Data were collected through in-depth interviews, policy document analysis, and field observations. The analysis was conducted using the Institutional Political Economy Analysis method to trace the interactions among political, bureaucratic, and economic actors within the context of BUMD policy formation. The findings reveal three key points the development of an Open Model of Political Support, which positions politics as a facilitative rather than an interventionist force. This model illustrates a collaborative and adaptive relationship among local governments, regional parliaments (DPRD), and BUMD within a transparent and accountable system. These findings broaden the study of institutional political economy and contribute to strengthening democratic, effective, and sustainable governance of regional-owned enterprises at both provincial and district levels.