Tue, 25 Apr 2000

BUMN directors

The government has been applying a new policy requiring all prospective directors of state enterprises (BUMN) to undertake a fit and proper test. It is a significant step, or leap, in the effort to find prospective directors of BUMN that in addition to having managerial and technical skills, are also expected to possess integrity and clean track records.

In the interest of minimizing corruption, collusion and nepotism (KKN), when a senior manager of a BUMN is to be promoted to the position of director, he should be moved to another company. Likewise a director being promoted to president director, should be transferred to another BUMN.

The Attorney General's Office and the Justice (Judiciary) Department have been applying and implementing the method -- and its result shows that it is an effective way to eliminate or at least minimize KKN.

In fact, there are several directors who have been connected with a particular BUMN for more than 23 years and this unhealthy condition is the result of promotion from within where they previously were employees of such company prior to holding the positions of directors.

It is time for the Ministry of State Enterprises Development and Investment to make a thorough, drastic and comprehensive change of the old policy by implementing tour of duty and tour of area amongst BUMN directors. Additionally, undercover lobbying for promotions and positions within BUMN should be neutralized by emphasizing the minister's policies that such promotions and positions are solely based on performance in all aspects and the practice of lobbying will not be tolerated.

Sneaky lobbies or approaches constitute KKN and therefore these practices should be eradicated. Otherwise the illegal acts can become a deadly poison or cancer which will affect BUMN.

HASAN BASRI MUCHTAR

Jakarta