GOVERNMENT, STATE-OWNED ENTERPRISE, and LIBERALIZATION of UNIVERSAL POSTAL OBLIGATION SERVICES

This study aimed to examine the extent to which the relationship between the government and state-owned enterprise (SOE) hinders the achievement of the liberalization of universal postal obligation (UPO) services. This study motivated the failure of postal industry reforms and the performance improvement of PT Pos Indonesia (the Indonesian postal SOE). A case study method is selected to expand the existing path dependency theory. The development of postal services was reconstructed using path dependence, which also revealed the nature of relationships between the government and SOEs, and the barriers to the success of liberalization and performance improvement. Through this method, the theoretical approach is expanded. This study demonstrates how the historical need to perform socio-political functions has produced high dependence, reciprocal dependence, and mutual advantages between the government and SOE, which have hindered the company’s ability to be lucrative and effective. The cause of SOE’s poor performance and inefficiency occurs when the company is required to execute UPO services. This study added to the body of knowledge and improved government policy. These study implications are anticipated to offer border knowledge and comprehension of the vital responsibilities that USOs and subsidies play in the community.