Change of management

Everyone should support the stance taken by Danareksa Club, the employee union of PT Danareksa, in rejecting the presence of the new management. We think it is high time this state-owned corporation, which deals in investment banking, should act more professionally and be free from corruption, collusion and nepotism (KKN). Such an attitude by its employees is also commendable as it will create a positive image of PT Danareksa in the future.

PT Danareksa's change of management is a clear illustration of how state companies are frequently prone to government intervention, or to be more specific in this case, the interference of the state minister supervising state corporations. Just like in the past, management changes appear to be an unavoidable policy. It is difficult for the public to control the related policy due to the lack of transparency. It, therefore, becomes even more complicated when the decision is based more on political than economic grounds.

We strongly appeal to the government to implement the three basic principles of good corporate governance so that it can become transparent, independent and accountable.

This way the public will be aware of the decision-making process and the real reasons behind the change of management, which should be free from intervention or influence from any group or figure, so that the management will become accountable and valued for its fairness and sense of justice.

In the guidelines set out for good corporate governance, compiled by the related national policy committee in March 2001, it is mentioned that the shareholders should set up the system for appointing the board of commissioners and directors. Has the government, as the shareholders, established the aforesaid system? If the answer is no, then the state minister supervising state corporations should put it on his priority list.

BUDI PURNOMO

Coordinator of the Consortium for

Transparent Public Information

Jakarta