Government delays shake-up of state companies

Government delays shake-up of state companies

JAKARTA (JP): President Abdurrahman Wahid postponed on
Wednesday plans to remove the management of eight state companies
to allow their slated replacements to undergo fit and proper
tests and meet other technical requirements.

State Minister of Investment and State Enterprises Laksamana
Sukardi said Abdurrahman had proposed several names for the top
jobs at the state companies, but the selection was not yet final.

"First there should be a fit and proper test (on them)," he
said at the State Palace after meeting with the President.

The President said on Tuesday he had signed a decree to
replace the management of eight state companies as part of the
effort to rid the companies of corruption, collusion and nepotism
and improve their performances.

Abdurrahman promised to formally announce the decree on
Wednesday.

Laksamana confirmed the President had signed the decree, but
said, "It is subject to a fit and proper test."

Laksamana refused to name the proposed replacements or the
eight state companies involved in the shake-up.

"Most of the eight companies are banks," Laksamana said,
adding that as far as the banks were concerned, the new
managements should first pass fit and proper tests carried out by
the central bank.

During the fit and proper tests, the central bank will examine
the moral and business track records of the candidates as well as
their business acumen, he said.

He added that state companies which were publicly traded could
change their boards of directors only through a general
shareholders meeting.

It is known that two of the companies involved in the shake-up
are state oil and gas company Pertamina and Bank Negara Indonesia
(BNI).

The President has ordered the board of commissioners of
Pertamina to find a new leader for the company to replace
Martiono Hadianto, while the plan to replace the head of BNI was
announced by Laksamana.

Analysts have said state telecommunication company PT Telkom
is another state company that is up for a change at the top, as
its president AA Nasution is nearing retirement age.

Laksamana said any changes in Telkom and BNI's management
should be approved by the companies' shareholders.

Laksamana also welcome the demand by several legislators that
the House of Representatives be involved in the examination of
candidates for the management of state companies.

"I think if the House wants to contribute and play a positive
role, why not? There aren't any restrictions or obligations on
that," Laksamana said.

Separately, Bank Indonesia Governor Syahril Sabirin said the
central bank would soon carry out fit and proper tests on
candidates for the new managements of state banks.

"As far as BNI is concerned, the fit and proper tests will be
carried out soon," Syahril said after meeting with Abdurrahman.

He said the bank had received the names of the proposed
president and members of the boards of directors and
commissioners for BNI from Minister of Finance Bambang Sudibyo.

However, the list did not specify who would assume which post,
Syahril said.

Syahril also said he was unsure if the central bank had
received the names of the proposed candidates for the managements
of other state banks the government intended to shake up.

Separately, Bank Mandiri president Robby Djohan said on
Wednesday he had not been notified on any imminent changes in the
bank's management.

"After all, we have been doing our job only for about one year
now and most of our time has so far been preoccupied with
completing the merger process of the four state banks that formed
Bank Mandiri," Robby said. (jsk/prb)