More autonomy urged for state companies<\/p>\n
JAKARTA (JP): State-owned companies need more freedom in
\nmanagement and more qualified managers to make themselves
\ncompetitive and efficient, experts said here over the weekend.<\/p>\n
Frans Seda, chairman of the PPM Foundation, told journalists
\nafter attending the graduation ceremony of the PPM Graduate
\nSchool of Management on Saturday that many state companies are
\ninefficient because they are burdened with missions set out for
\nthem by the government.<\/p>\n
\"The most effective way to remedy inefficiency in state
\ncompanies is reducing the governmental missions and giving them
\nmore freedom, as well as more autonomy, to do business,\" Seda, a
\nformer minister of finance, said.<\/p>\n
He suggested that the government recruit qualified managers to
\nmanage state companies, especially those which need \"helping
\nhands\".<\/p>\n
\"If necessary, the government can hire private managers to
\nmend the problems,\" Seda said.<\/p>\n
He added that the current recruitment of managers at state
\ncompanies, which takes only civil servants, is not proper.<\/p>\n
Meanwhile Julius Tahija, chief commissioner of Bank Niaga,
\nnoted that the leadership capability of managers still plays an
\nimportant role in making state firms efficient.<\/p>\n
\"The performance of state companies still depends largely on
\nthe quality, integrity and perseverance of their managers. And
\nunfortunately, the crisis of leadership occurs everywhere,\"
\nTahija said.<\/p>\n
He said that integrity is the most important side of the
\nmanagers because lack of integrity can lead to practices, such as
\ncollusion, manipulation and corruption.<\/p>\n
Supporting Tahija's argument, Anugerah Pekerti, director of
\nthe PPM Institute, said the inadequate legal framework allowed
\nsuch practices to happen.<\/p>\n
\"We should strengthen our legal framework so that it can limit
\nbad practices and facilitate fair competition,\" Pekerti said.<\/p>\n
Commenting on the government's current privatization of state
\ncompanies, Pekerti said the policy is leading in the right
\ndirection.<\/p>\n
\"Privatization will make them more efficient. Thus, the
\ngovernment should privatize all non-strategic state companies,\"
\nhe suggested.(rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/more-autonomy-urged-for-state-companies-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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