West Java Governor Dedi Mulyadi has launched a sharp critique against\nthe management of Regional-Owned Enterprises (BUMD) in his province. He\nassessed that the operations of several West Java BUMDs are currently\nrife with brokering practices, lack transparency, and involve illogical\ncooperation schemes that ultimately harm the regional treasury.<\/p>\n
The criticism was delivered by Dedi while attending the\ngroundbreaking ceremony for the Legok Nangka waste-to-energy power plant\nproject in Bandung on Wednesday (29\/7). According to him, the\nirregularities in BUMD management have a direct impact on the public\nbecause profits that should be deposited into the regional treasury are\ninstead retained internally by the companies.<\/p>\n
Dedi highlighted one practice he deemed nonsensical, specifically\nregarding the profit-sharing funds from oil and gas managed by PT\nPertamina. He argued that these funds should be directly deposited into\nthe West Java Provincial Government\u2019s treasury to finance\ndevelopment.<\/p>\n
\u2018Why isn\u2019t it going directly to the regional treasury? What is the\nimpact? For years, it has gone to the BUMD, and the BUMD has not\ntransferred it to the regional treasury,\u2019 Dedi stated. He added that the\nfunds are often reinvested by the BUMD to create new entities with\nunclear urgency.<\/p>\n
\u2018Instead of helping development, the profit-sharing funds evaporate\nwithout a trace because they are reinvested by the BUMD. They create\nsubsidiaries, sub-subsidiaries, and even sub-sub-subsidiaries,\u2019 he\nstressed. Dedi acknowledged that he has reported this anomaly in\nbureaucratic governance directly to President Prabowo Subianto.<\/p>\n
Beyond the oil and gas issue, Dedi also scrutinised the cooperation\nscheme for the provision of Trans Jabar mass transportation between the\nWest Java Provincial Government, the BUMD PT Jasa Sarana, and PT DAMRI.\nHe believes the BUMD\u2019s involvement in this project merely creates a\nbureaucratic chain that burdens the regional budget.<\/p>\n
Under the current scheme, the West Java Provincial Government does\nnot pay DAMRI directly but instead channels payments through PT Jasa\nSarana. As a result, the BUMD enjoys a double profit from a percentage\nof the contract value and operational fees from provincial revenue.<\/p>\n
\u2018Jasa Sarana gets two things: one, 5 percent of the IDR 120 billion\ncontract; two, operational costs from the provincial revenue,\u2019 Dedi\nexplained.<\/p>\n
As a corrective measure, Dedi confirmed he will revise the\ncooperation scheme starting next month. He asserted that he will sever\nthe BUMD\u2019s role as an \u2018intermediary\u2019 in public services that can be\nconducted directly.<\/p>\n
\u2018Next week I will change the strange ones again. Starting in August,\nI will cut it out, the provincial government will deal directly with\nDAMRI, no more going through Jasa Sarana. This is extraordinary\nbrokering, and it has been going on for years,\u2019 he concluded.<\/p>\n
Dedi hopes that by cleaning up brokering practices within the BUMDs,\nWest Java\u2019s Regional Original Revenue can increase significantly and the\nbenefits can be felt directly by the public through tangible development\nprogrammes.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/dedi-mulyadi-slams-west-java-bumds-calls-out-extraordinary-brokering-practices-1785329505", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }