SOEs urged to fix tainted image

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.