Weaknesses Of BUMN, Jokowi: If There Is An Assignment, It Will Be Unprofessional

JAKARTA - President Joko Widodo (Jokowi) revealed one of the weaknesses of state-owned companies. The weakness in question is carrying out assignments from the government. When SOEs get assignments, said Jokowi, the process becomes unprofessional.

"The weakness of the BUMN, if there is an assignment, it becomes unprofessional. The weak point is there, so that the professionalism is lost," Jokowi said in a briefing to the commissioners and directors of Pertamina and PLN, quoted from the Presidential Secretariat's YouTube channel, Sunday, November 21.

Not only that, according to Jokowi, the state-owned companies that are assigned to do so often do not perform the calculations correctly. It's not even transparent, so the results of the project's value are illogical.

Jokowi said, when Pertamina and PLN received confirmation, they had to provide a transparent calculation of the project. So that the consequences that must be borne by the company and the government become clear.

For example, said Jokowi, when PLN determines the electricity tariff, it must be clear what it will look like. The same applies to Pertamina in handling premium and LPG.

"It was conveyed transparently and openly. Be forthright with numbers, with calculations, with calculations. But logically," he said.

Jokowi also reminded the directors and commissioners of PLN and Pertamina that every assignment given by the government would be checked. Therefore, all planning must be transparent.

"Don't think it's because the assignment is not checked, it's not controlled. If you want to go to securitization, you'll find out. The price is expensive, the price is difficult to securitize. Because there's an assignment, you just keep riding," he said.

Therefore, said Jokowi, the governance of the assignment from the government must be improved by the SOE directors. He emphasized that he would not compromise and would take firm action if any party was found to have committed fraud.

"This is what we must avoid. If we are excited, I will take action. This means that Pertamina and PLN must maintain the governance of each existing assignment. Once again, don't take a ride, don't hide in the name of the assignment so that the management is not efficient," he said.