Document Type : ORIGINAL RESEARCH ARTICLE
Authors
1
Department of Business Administration, Faculty of Social and Political Sciences, Parahyangan Catholic University, Bandung, Indonesia
2
Department of Management, Faculty of Economics, Parahyangan Catholic University, Bandung, Indonesia
Abstract
BACKGROUND AND OBJECTIVES: Urban state-owned enterprises operate in complex and high-risk environments where weaknesses in human capital management and risk governance can disrupt essential services and undermine public trust. PT Pupuk Indonesia, a major Indonesian SOE with significant urban and national functions, requires a strong risk culture and competent personnel to maintain operational resilience. This study examines the effect of ERM maturity, human capital risk, leadership capability, and risk culture on employee experience optimization in an urban public enterprise in Indonesia.
METHODS: A quantitative approach and descriptive and correlational research designs were employed. The study population comprised 70 managerial-level respondents selected through purposive sampling. A validated instrument measuring ERM maturity, human capital risk, leadership capability, risk culture, and employee experience was used. Data were analysed using descriptive statistics and inferential statistics.
FINDINGS: Risk culture was rated excellent by 38.57 percent of respondents and good by 48.57 percent. The most critical human capital risks identified were the lack of competent employees, ineffective human resource planning, and the absence of career development systems. Multiple regression analysis showed that ERM maturity, human capital risk, leadership capability, and risk culture significantly influenced employee experience optimization. Leadership capability emerged as the strongest positive predictor, followed by risk culture and ERM maturity, while human capital risk exerted a significant negative effect. The regression model explained 52.0 percent of the variance in employee experience optimization (R² = 0.520).
CONCLUSION: The study concludes that employee experience optimization is significantly influenced by ERM maturity, human capital risk, leadership capability, and risk culture. Leadership capability emerged as the strongest positive predictor, while human capital risk had a significant negative effect. The findings suggest that strengthening ERM practices, improving leadership capability, fostering a supportive risk culture, and reducing human capital risks can enhance employee experience and organizational resilience in urban public enterprises.
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