State enterprises and conglomerates<\/p>\n
Around the beginning of 1990 there emerged a controversial
\nidea to recruit executives of certain prominent private companies
\nto hold the positions of top management at certain strategic
\nstate enterprises (BUMN). At the time it was intensively blown up
\ninto a negative image that most BUMN employees were inefficient
\nand the directors were in the style of typical bureaucrats and
\nwere deemed to have no business acumen.<\/p>\n
Some people considered that most directors of BUMN lacked the
\ncourage and enthusiasm to enter into international competition
\nbecause they had no self-confidence, trading networks, experience
\nand so on. Certain entrepreneurial groups who were considered as
\npowerful conglomerates took advantage of this condition.<\/p>\n
In the New Order era, these entrepreneurs received a lot of
\npraise for their success. Afterward, a dramatic change turned the
\ntable and the people became aware of the acrobatic show of these
\ntycoons. They were successful as a result of grabbing and
\nstealing a lot of money from certain banks by dealing in
\ncorruption, collusion and nepotism (KKN) with the corrupt
\nofficials. They themselves grow rich albeit their companies were
\ndeclared insolvent or bankrupt while the banks suffered great
\nlosses because of bad debts as the result of KKN.<\/p>\n
Affliction, misery, unemployment and poverty arising from the
\nterrible behavioral performance of the pseudo conglomerates
\nconstitutes the tragic and gray history of this nation. In
\naddition to the tragedy, this republic also has to bear an
\nextraordinary amount of national debt. Indonesians do not wish
\nfor this catastrophe to appear and happen again in the future.<\/p>\n
Although in the New Order era BUMN was considered the
\nheadquarters of kleptomaniacs, in comparison to companies owned
\nby the pseudo conglomerates, certain major BUMN, including
\nfertilizer companies have given established evidence that they
\nnot only have been surviving, but have made large profits from
\nexports, even though Asian countries, including Indonesia, are
\nstill in the grips of an economic recession. It seems that the
\ncurrent government is restructuring BUMN in all aspects.<\/p>\n
Nevertheless, some people are of the opinion that the
\ngovernment should not ask politicians or political leaders to
\njoin in such efforts by appointing them to hold the positions of
\nBUMN directors. As profit making organizations and in order to
\nface keen international competition, BUMN should be managed by
\nexecutives whose professionalism, expertise and business acumen
\nhave been proven. Otherwise, we put the future and viability of
\nBUMN in jeopardy. It is not wishful thinking to expect all of
\nBUMN to be profit making by the end of 2002, provided that all
\nstate enterprises are managed by professional executives whose
\nintegrity and capability are in no doubt.<\/p>\n
Last but not least, BUMN should be free from the influence of
\nany political force. In the New Order era, BUMN were fully
\ninvolved in disguised activities of fund raising in the interests
\nof a certain political organization. Nowadays this should be
\navoided. The unfair game is over and should not be recommenced.<\/p>\n
HASAN BASRI MUCHTAR<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/state-enterprises-and-conglomerates-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }