Reorganizations at state firms await new rules

Rendi A. Witular, The Jakarta Post/Jakarta

Criticism directed at President Susilo Bambang Yudhoyono on the 100th day of his administration continues to pour in, this time from his own aide State Minister of State Enterprises, Sugiharto, who claimed that the failure to revitalize state enterprises was partly the fault of the President himself.

Sugiharto argued that the delay in the issuance of a new government regulation on his office's new organizational structure has effectively hampered the anticorruption drive in state firms, despite the fact that these firms have been systematically milked by bureaucrats for decades.

"Unless the President gives his approval for the new regulation, I can't replace any key officials in my office or any executives in state enterprises," he told reporters at the State Palace recently. "I am still waiting for it (the regulation) so that I can get to work."

The reshuffle plan for the state minister's office and heads of state enterprises was part of Susilo's 100-day economic reform agenda. The plan was considered a strategic move to help improve the performance of state enterprises and to combat the rampant corruption that occurs in these firms.

Most state enterprises have been poorly managed for a very long time and suffer from very low rates of return on investment due to the intervention of vested political interests, which often use the companies as cash cows for political parties.

The state minister's office is currently facing the daunting task of recruiting professionals to sit on the new board of directors for national flag carrier Garuda Indonesia.

Garuda management has been in limbo for more than a year following the failure of the previous government to appoint a replacement board due to alleged collusion in the selection process.

Susilo himself earlier this week urged executives of state enterprises not to provide facilities for people claiming to be members of his family or other key state officials, saying that "such a practice is at the root of corruption and must be stopped."

Despite the absence of the necessary regulation, Sugiharto was optimistic that it would not discourage him from working to improve the performance of state enterprises.

In his early days in power, Sugiharto had planned to replace most of the incumbent key officials at his office, following allegations from the business community and legislators that the officials were involved in corrupt practices.

The changes are not critical because three of the state minister's six deputies have resigned due to illness and retirement. The posts have remained empty until now.

A high-ranking official at the state minister's office, who requested anonymity, said many officials were reluctant to work as their futures were shrouded with uncertainty following the delay in the reshuffle program.

"The uncertainty has concerned the officials. They are always wondering whether they are going to be replaced or not. Pak Sugiharto must immediately make up his mind and appoint new officials to end the uncertainty," he said.

However, Sugiharto said the management reshuffle at state firms could only be done if his own office had already appointed new people into the new structure.