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)