President to help select SOE execs
President to help select SOE execs
Rendi A. Witular, The Jakarta Post, Jakarta
President Susilo Bambang Yudhoyono will from now on directly
select candidates for state-owned enterprises' (SOEs) management
to prevent political parties and other groups from infiltrating
SOEs and turning them into their cash cows.
Presidential spokesman Andi Malarangeng said on Tuesday that
the President had issued Presidential Instruction No. 8/2005 on
the selection of directors and commissioners for SOEs, stating
that the president will be directly involved in the selection
process for the executive posts.
"From now on, the selection of SOEs management will be
stricter than before. It's to ensure that the people who run the
SOEs will perform well and be of high integrity," said Andi at a
media conference at the State Palace.
The instruction stipulates that SOE management candidates
selected by the Office of the State Minister of State Enterprises
should be approved by the final assessment team (TPA) before they
are inaugurated.
The team members will include the President, the Vice
President, the state minister of administrative reforms, the
Cabinet secretary, the state minister of state enterprises, the
chief of the National Intelligence Agency (BIN) and other
relevant ministers.
The TPA will also help select candidates for top government
posts in public services, the military and police.
At present, the candidacy for top posts at SOEs is fully under
the responsibility of the Office of the State Minister of State
Enterprises. Previously, a deputy at the state minister's office
could directly select and inaugurate new managements for SOEs
without having to consult the president.
Such practices have been blamed for the SOEs' poor performance
since most selected managements have direct links with political
parties and other groups, making the SOEs a cash cow for them.
The issuance of the presidential instruction is in line with
the upcoming selection of managements for some strategic and
profitable SOEs, including Bank Mandiri, Bank Negara Indonesia,
Bank Rakyat Indonesia, Bank Tabungan Negara and state oil and gas
firm Pertamina.
The new government has thus far replaced the management of
national flag carrier Garuda Indonesia and pension fund
management PT Jamsostek. However, it remains unclear whether the
appointments were approved by the President.
Sources at the House of Representatives said a number of
political parties were vying to have their candidates placed at
SOEs, especially at Bank Mandiri, to enable them to gain
financial support to fund their operations and for preparing for
the 2009 general election.
State Minister of State Enterprises Sugiharto acknowledged
that the presidential instruction was aimed at preventing
political interests from misusing the SOEs.
"The aim is to make the selection more ideal. We don't want
any political interest in SOEs. It is time now to make the
enterprises perform and benefit the country," he said.