Head of SOE Regulatory Agency Emphasises CEO's Role in Determining Direction of SOE Transformation

Transformation is not sufficient merely as a policy agenda but must become a collective movement understood and implemented by all members of the company.

Jakarta (ANTARA) - Dony Oskaria, Head of the State-Owned Enterprises (SOE) Regulatory Agency (BP BUMN), emphasised that the role of the Chief Executive Officer (CEO) is a crucial factor in ensuring the direction and success of company transformation, in this case, state-owned enterprises (SOEs).

“A CEO must know the current situation of their company and design the future outlook of their company,” Dony stated in his remarks received in Jakarta on Monday.

This was conveyed during the Danantara CEO Programme Batch I, held on Monday.

Dony, who is also the Chief Operating Officer (COO) of Danantara, explained that leadership is not only required to understand the current condition of the company but also to formulate a clear future vision.

That vision needs to be built on a strong understanding while being effectively communicated so that it can be understood by the entire organisation.

Furthermore, Dony stressed that change can only proceed optimally through a combination of top-down approaches and buy-in processes.

Instructions from leadership must be accompanied by efforts to build understanding and collective conviction at all organisational levels.

“Change can only be done in two ways. Number one is the top-down approach. People change because of top-down. But at the same time, that change must be communicated to carry out the buy-in process,” he said.

According to him, transformation is not enough to just be a policy agenda but must become a collective movement understood and carried out collectively by all company personnel.

On that occasion, Dony also emphasised the importance of direct involvement of leaders in the execution of transformation. Without present leadership, the risk of transformation failure will be even greater.

“He leads the execution himself; 70 per cent of transformations fail. Only 30 per cent succeed. Why? What’s the key? The leader. If he is not able to lead the execution of the transformation himself, the transformation will ‘fail’,” he said.

BP BUMN and Danantara Indonesia continue to promote the strengthening of SOE leadership so that every transformation runs with a clear vision, effective communication, and consistent and sustainable execution, to provide added value for the state and society.