Gus Dur shakes up 8 state firms in a bid to improve performances

JAKARTA (JP): President Abdurrahman Wahid said on Tuesday he had decided to replace the leaders of eight state companies to improve the companies' performances.

The President, who is popularly called Gus Dur, said he signed a decree on the replacement of the leadership of the eight state companies on Tuesday, but refused to name the companies as well as their replacement leaders.

"Even my assistants have yet to know their names," Gus Dur said in reply to a question raised by a participant of a seminar on oil and gas, adding the names would be announced on Wednesday.

However, Gus Dur said the names could be different from those rumored, reminding those present of his surprise selections for the leaders of the state electricity company PT PLN and the National Police.

Gus Dur recently took many people by surprise by appointing former minister of mines and energy Kuntoro Mangkusubroto and Lt. Gen. Roesdihardjo as president of PLN and chief of the National Police respectively.

Neither of their names had been tipped by analysts for the two top jobs.

The public remain unsure of which eight companies Gus Dur wants to shake up, except for state oil and gas company Pertamina and state-owned Bank Negara Indonesia.

Gus Dur has ordered Pertamina's board of commissioners to select candidates to replace Martiono Hadianto as the leader of the state company.

State Minister of State Enterprises and Investment Laksamana Sukardi has also said the government would replace the leader of Bank Negara Indonesia.

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.

Gus Dur said the changes in leadership were necessary to make state companies clean, efficient and competitive.

He repeated his strong commitment to stamp out corruption, collusion and nepotism, which were rampant in state companies throughout the 32-year rule of former president Soeharto.

"This is very important, because for so long the oil industry in Indonesia as well as other industries, like electricity and so forth... were controlled by a family," Gus Dur said, apparently referring to Soeharto's family.

Gus Dur recalled that his brother once took part in a tender for supplies for Pertamina, but he failed as the price he offered was too low.

"Crazy, but it is a fact... because a fifth of all the other tenders would have gone to one source only," Gus Dur said, apparently alluding to corruption, causing those present at the seminar to laugh. (jsk/prb)