Prabowo to Deploy Presidential Special Envoys Across All State-Owned Enterprises
President Prabowo Subianto stated that he will place presidential special envoys throughout all state-owned enterprises to strengthen the oversight system for managing state assets. This measure is considered essential to ensure that red-plate companies carry out their mandates properly and prevent potential leakage of national wealth.
“I have appointed special presidential envoys, and I may later appoint special envoys at each BUMN we manage. We must oversee this because it is the lifeblood of the Indonesian nation,” Prabowo said whilst providing guidance at the first anniversary commemoration of the Daya Anagata Nusantara Investment Management Body at Wisma Danantara in Jakarta on Wednesday (11 March).
According to the President, strong oversight is essential to prevent state wealth management from suffering losses due to weak governance. He noted that many countries with substantial wealth can still experience losses if management and oversight are not conducted properly.
On this occasion, Prabowo also reminded the leadership and supervisory board of Danantara to maintain the institution as Indonesia’s sovereign wealth fund. The President emphasised that managing Danantara carries significant responsibility as it concerns the future wealth of the nation.
“I entrust you with vigilance. Remember, the hopes of the entire nation rest on your shoulders. You are managing the wealth of our children, grandchildren, and great-grandchildren,” he said.
He also stressed the importance of oversight from various state institutions in managing Danantara. According to Prabowo, several institutions such as the Financial Audit Board (BPK), the Financial and Development Supervisory Board (BPKP), the Attorney General’s Office, the police, and the military are involved in oversight to ensure proper governance of the institution.
The President believed Danantara is currently one of the most-overseen institutions in Indonesia, supported by a supervisory board consisting of various high-ranking state officials.
Beyond highlighting oversight aspects, Prabowo also reminded the importance of applying good corporate governance for Danantara leaders as well as BUMN management.
“I am convinced and believe that the key to good management lies in the heart and soul,” the President said to BUMN leaders and Danantara managers at the event.
Prabowo went on to announce that he had received a report showing that the return on assets of SOEs under Danantara’s wing in the last year increased by more than 300 per cent.
According to him, management theory itself does not have a system capable of managing such a large number of entities under a single control.
Danantara has begun reviewing or auditing the conditions of state-owned BUMN companies.
Prabowo noted that Danantara demonstrated very strong performance in the last year with a return on assets achievement of more than 300 per cent.
Prabowo also emphasised that this programme was a direct government decision that must be realised immediately.
President Prabowo Subianto warned his staff not to submit false reports or reports that do not match actual conditions. He insisted there be no report manipulation.
President Prabowo Subianto reminded Danantara Indonesia managers not to be complacent with performance achievements in the institution’s first year of operation.