President urges state enterprises to fight corruption
President urges state enterprises to fight corruption
Rendi A. Witular, The Jakarta Post, Jakarta
President Susilo Bambang Yudhoyono has urged executives at state
enterprises not to provide facilities for people claiming to be
members of his family or other key state officials, to be in line
with his government's pledge to avoid making state firms
cash cows.
"Such a practice is the root of corruption and must be
stopped," he said when officially opening the State Enterprises
Summit on Tuesday at the State Palace.
The President said he was annoyed by reports claiming that a
number of people had used his name to obtain money from state
enterprises.
"The reports said certain people had used my name or the Vice
President's or ministers' to get loans and projects from state
firms. That is not true! We never asked anything from them," he
said.
His call was similar to that made by president Megawati
Soekarnoputri in her first days in power. In 2003, news broke
that her son Mohammad Rizki Pratama was involved in PT Theda
Persada Nusantara, a private firm appointed to develop a Chinese
Center in the Jakarta Fairground in Kemayoran, Central Jakarta.
He eventually withdrew from the project after an inquiry was
opened by the House of Representatives.
Many state firms have been poorly managed and deliver low
rates of return on investment and equity due to interference by
people with connections.
"State enterprises' managements must contemplate whether
corruption is spiraling at their companies or if they have
political links with particular parties. I will not tolerate such
practices," said Susilo.
The President also ordered State Minister of State Enterprises
Sugiharto to focus on making state firms the drivers of
developing the country's agriculture and fishery sector as well
as a catalyst for small-and-medium enterprises.
Most of the country's state enterprises are reluctant to
engage in the three sectors due to lack of government support and
limited access to both local and international markets.
I-box
SOEs with largest losses in 2003
No. SOEs Losses
1. PLN 3.5 trillion
2. Perusahaan Perdagangan Indonesia 418.2 billion
3. Pelni 382.4 billion
4. PANN Multi Finance 152.2 billion
5. Indofarma 129.5 billion
6. Industri Sandang Nusantara 114.7 billion
7. Kertas Kraft Aceh 108.4 billion
8. PTPN II 96.1 billion
9. Inhutani I 90.9 billion
10. Cipto Mangunkusumo General Hospital 81.221 billion
Source: Office of State Minister of State Enterprises