Reshuffle Of SOE Board Of Directors Bonus Rules, Erick Thohir Worried About Dipoles Financial Reports

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir has overhauled the rules for giving bonuses to state-owned company directors. Now, annual bonuses do not only refer to the company's performance. The policy was determined in line with the case of falsification of financial reports.

Erick said this step was taken as a form of accountability from the SOE directors for the policies they took.

"I encourage the improvement of the payroll system and bonuses. I have said that the system and bonuses now in BUMN are no longer good companies to get bonuses that year, maybe the books that are distinguished are good," he said at the Ministry of SOEs, written Wednesday, August 2.

Erick said the annual bonuses for SOE bosses were partially disbursed and half of them would be detained. The purpose of this rule is to provide a deterrent effect on irresponsible directors.

"But we want to process some bonuses to be paid, some to be detained, so what? There was a previous Board of Directors responsibility for the next Directors because he knew he would find out if he was playing around with it," he said.

Erick said, the company's performance is not merely an indicator. He said he would differentiate the bonuses of directors from SOEs that posted profits and could provide dividends to the state.

"Now I'm pushing through Mr. Sesmen, Mr. Wamen, so that I also distinguish the company's bonuses that are profitable and dividend-sharing," he said.

As previously reported, Erick Thohir plans to pay a bonus for the directors of state-owned companies for three years. The goal is to ensure continuity of the responsibility of running the company even when there is a change of directors.

"We have a meeting within the ministry that the bonus in the future is proposing not to be paid in advance. But it must be in installments of 2 to 3 years. So it is related to the next board of directors," said Erick.

Erick explained, so that improvements in work programs at state-owned companies can be sustainable, he is also designing a blacklist system for the board of directors involved in cases that are against the law.