Directors of state companies

Directors of state companies

From Suara Karya

The government's plan to overhaul the boards of directors of state-owned enterprises and their boards of commissioners, reported in this paper in its April 25 issue, must be supported, as long as this overhaul is not a means to accommodate the interests of political parties.

To ensure that the new officials can perform their duties properly, I would like to propose the following:

1. In conducting a fit and proper test, the principle of good corporate governance should be faithfully adhered to in order to ensure that the boards of directors/commissioners would really be capable of leading the state enterprises concerned.

2. Specifically with regard to the directors concerned with human resources management, it is expected that they should possess the following attributes: good leadership mentality and competence in human resources management. It is common practice that a human resources director will deal with social problems (the system of management, the treatment of personnel, the development of human resources and corporate governance).

3. As a state-owned enterprise is a profit-making undertaking, it is oriented to consumers. Therefore, the boards of directors must be able to involve themselves in interactive communications and be ready to serve the customers. This is a rare trait in most members of the boards of directors -- on average aged 50 or above -- as they have usually been groomed in the pattern of leadership in the era of monopolies. It is important, therefore, to take into account their age.

4. It is necessary for candidates hoping to become members of the boards of directors to explain their vision and mission in the face of the era of the liberalized market. They should also explain what changes they would introduce, particularly in connection with the present situation. They should also use accurate figures when talking about the current state of state- owned enterprises (human resources management, financial situation, production, marketing, logistics and so forth). Failure to achieve real change in state-owned enterprises is usually attributable to ignorance on the part of the boards of directors about the prevailing situation.

FAHERY PARBO

Cilegon, Banten