Employee Engagement as a Performance Driver of State-Owned Enterprises (SOE’s) in Indonesia

The research was conducted with a survey method to 429 middle managers in 141 SOEs in Indonesia. Data were collected through an indirect communication technique using a questionnaire and direct communication techniques using limited interviews and documentary studies. Data were analyzed descriptively through weighted averages and inferentially through Structural Equation Modelling (SEM).

The results of the study show that: Employee engagement in Indonesian SOEs was in the “good” category, but not optimal. The performance of the SOEs managers was measured based on the total performance scorecard (TPS). Employee engagement (cognitive, emotional, and behavioral) partially and simultaneously contributed positively and significantly to the improvement of the performance of Indonesian SOEs based on the total performance scorecard Keywords: Company performance; employee engagement; cognitive engagement; emotional engagement; behavior engagement.