Most SOE commissioners inexperienced: Survey<\/p>\n
JAKARTA (JP): More than 95 percent of commissioners at state-
\nowned enterprises (SOE) are either senior government officials or
\nmilitary personal, according to a survey released here on
\nThursday.<\/p>\n
The survey, published by business research company Business
\nIntelligence Report (BIRO), said that most SOE commissioners did
\nnot have business backgrounds.<\/p>\n
BIRO's director of research and business development Beni
\nSindhunata said the lack of professionalism on the part of the
\ncommissioners had indirectly contributed to the poor performances
\nof most SOEs.<\/p>\n
He said the government's tradition of recruiting senior
\ngovernment officials and military personnel brought more harm
\nthan good to SOEs.<\/p>\n
\"State-owned enterprises need to have good corporate
\ngovernance. All commissioners must be appointed only after fit
\nand proper tests,\" he said at the survey's launching.<\/p>\n
The survey was based on research conducted over the last two
\nmonths on 124 SOEs operating in the industrial sectors, excluding
\nbanking and finance.<\/p>\n
The survey also found that the performance of SOEs had
\ndeclined dramatically; none of them have obtained a \"very
\nhealthy\" rating since 1998.<\/p>\n
Beni said the decline in SOE performances was very much
\nrelated to the way the board of directors and commissioners
\nmanaged their concerns.<\/p>\n
He said most commissioners failed to contribute their time to
\nthe companies since many of them were still active in their
\noriginal jobs, let alone offer management or technical advises.<\/p>\n
He said in order to improve SOE efficiency the size of the
\nboard of commissioners must be squeezed from the average of four
\nor five people per board at present to only two: one from the
\ngovernment and a professional.<\/p>\n
The survey also shows there are currently nearly 500 people
\nhired as commissioners, including chief commissioners, at SOEs.
\nThese commissioners are paid an average monthly salary of between
\nRp 4 million (US$479) and Rp 5 million.<\/p>\n
SOEs active in communications, forestry and plantations,
\nfinance, trade and industry and public works have the most
\ncommissioners.<\/p>\n
Beni said the government must seriously reform the management
\nand operations of SOEs so they are prepared to enter the
\nimpending free-trade era.<\/p>\n
He said the government must be considerate in its
\nprivatization program so as not to sacrifice the companies'
\nassets for the sake of bringing in cash to its coffers.<\/p>\n
\"The government is pretty demanding with its privatization
\nplan. I don't think it will be able to meet the target sales,
\nit's unrealistic for the time being. It had better be revised,\"
\nhe said.<\/p>\n
The government is expecting to raise some Rp 6.5 trillion from
\nthe sales of 10 firms -- general mining company PT Aneka Tambang,
\nairport operator PT Angkasa Pura II, coal mining company PT Bukit
\nAsam, plantation companies PT Perkebunan Nusantara III and IV,
\nfertilizer producer PT Pupuk Kaltim and pharmaceutical
\nmanufacturers PT Indo Farma and PT Kimia Farma, surveyor firm PT
\nSucofindo and trading company PT Kerta Niaga -- during the April-
\nDecember 2000 fiscal year.<\/p>\n
If the proceeds from the sales of shares in the ten companies
\nare not satisfactory, the government has prepared another stand-
\nby list of nine state-owned enterprises, compromising of
\ntelephone operators PT Telkom and PT Indosat, retail store PT
\nSarinah, hotel management company JIHD, mining company PT Tambang
\nTimah, strategic industry holding BPIS, PUSRI as well as hotel
\nand office operators PT Wisma Nusantara and PT Perhotelan dan
\nPerkantoran Indonesia. (cst)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/most-soe-commissioners-inexperienced-survey-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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