SOEs urged to fix tainted image
The Jakarta Post, Jakarta
State-owned companies, long perceived as prone to corruption, have been asked to intensify attempts to help eradicate graft to restore the image of the firms and reduce the loss of state funds.
State Minister of State Enterprises Laksamana Sukardi acknowledged on Wednesday, that with their trillions of rupiah worth of assets, state-owned enterprises (SOEs) have often become the cash cow's of corrupt individuals.
"The image of state firms has been badly tainted (by those practices). The public perception toward SOEs is very poor, while rating agencies position SOEs as among the most corrupt institutions in the country.
"That's why an intensified effort to rebuild their image is of great importance," Laksamana told a seminar on corruption attended by top officials of SOEs.
Laksamana's office oversees hundreds of SOEs, with combined assets worth more than Rp 900 trillion.
Various surveys and investigations, including those conducted by the Supreme Audit Agency (BPK) and the Development Finance Comptroller (BPKP), show that irregularities -- defined as misuses of state funds -- have been, and are still, widespread in state firms.
Aside from setting up transparent and accountable supervisory systems in the companies, Laksamana told participants, the top officials of SOEs should also lead by example, so that the systems were effective.
As an example, Laksamana ordered the SOEs' leaders to comply with existing regulations designed to alleviate corruption, such as those set out by the Corruption Eradication Commission (KPK).
The KPK, whose members were appointed early this year with the task of trying to change the nation's image as one of the most corrupt countries in the world, stipulates that high-ranking state officials, including those holding posts at SOEs, are obliged to publicly state their wealth.
However, it has been widely reported that a large number of officials are yet to do so.
"From now on, I encourage you all to comply with that ruling and hand over your list of assets to the KPK," he said.