Ahok Suggest The Ministry Of BUMN To Disband, Observer: Continue, Just Get Rid Of It

JAKARTA - The President Commissioner of PT Pertamina (Persero) Basuki Tjahaja Purnama or Ahok proposed that the Ministry of State-Owned Enterprises (BUMN) be dissolved. This is because state corporate governance has been inefficient.

An energy economy observer from the Center of Energy and Resources Indonesia (CERI) Yusri Usman agrees with Ahok. He appreciated Ahok's steps in providing internal criticism of the corporation.

"We appreciate Ahok's step, keep going, go ahead," he said as quoted by Antara, Wednesday, September 16.

The poor performance of this state-owned company, said Yusri, can be seen from the peculiarities of how Pertamina did not reduce the price of fuel oil (BBM) when world oil prices were plummeting.

From the beginning of April to June, Pertamina did not reduce fuel prices at all when world oil prices were at their lowest level for the past 43 years. According to Yusri, this is due to inefficiencies in Pertamina's business processes from upstream to downstream.

Yusri said Ahok could take firm steps at Pertamina. Because in the position of President Commissioner, Ahok has several rules that can direct Pertamina to evaluate performance.

This is in accordance with Law number 40 of 2007 concerning Limited Liability Companies, Article 31 of the BUMN Law number 19 of 2003 concerning the duties of a BUMN commissioner, namely to supervise and advise the directors, as well as more complete duties and powers of commissioners.

Meanwhile, said Yusri, more details regarding the role of BUMN commissioners are regulated in Government Regulation number 45 of 2005 concerning the Establishment, Management, Supervision and Dissolution of BUMN.

"It is very possible to carry out all of these actions, or at least he can make recommendations from the board of commissioners to the BUMN minister to replace the board of directors and commissioners in the holding and sub holding as well as to his grandchildren and great-grandchildren who have already placed people who do not have the competence and integrity and not credible, "he said.

An energy economy observer from Gadjah Mada University Fahmy Radhi admits that he also agrees with Ahok. According to him, the BUMN Ministry should be dissolved.

The reason, said Fahmy, was that the main function of the BUMN ministry was only to coordinate all BUMN, while the supervisory function was carried out by the technical ministry. The existence of these two ministries causes BUMN to be ambiguous in making strategic decisions.

"The Ministry of BUMN has hardly contributed to improving efficient and transparent governance. Its role is more as an extension of interest groups, politicians and endorsers in placing commissioners and directors," he said when contacted by VOI.

Fahmy considered, often the endorser's strength is more powerful than the performance consideration in appointing directors. Pertamina's Managing Director Nicke Widyawati's performance plummeted, profits tended to fall, failed to increase lifting and build refineries. However, according to him, he was still reappointed as President Director of Pertamina.

"More anomalies and blunders. The Deputy Komut Pertamina is concurrently the deputy minister of BUMN," he said.

Because of that, Fahmy said, the Ministry of BUMN must be dissolved and replaced by forming a Super Holding which oversees various BUMN holding companies, and is directly responsible to the president.