It Was Revealed That Erick Thohir Cut The Salaries Of BUMN Directors But Did Not Cut The Salaries Of The CEOs

JAKARTA - State-Owned Enterprises (BUMN) Minister Erick Thohir has cut the salaries of state-owned company directors. However, the salary of the Managing Director was not touched by a fixed alias.

This is regulated in the Minister of BUMN Regulation Number PER-12 / MBU / 11/2020 concerning the Fifth Amendment to the Regulation of the Minister of BUMN Number PER-04 / MBU / 2014 concerning Guidelines for Determining the Income of Directors, Board of Commissioners, and the Supervisory Board of BUMN.

Published on November 25, 2020 and uploaded on December 30, 2020, this regulation tampers with the salaries of directors, commissioners and bonuses from the old 2014 regulation, which at that time was still Minister of BUMN, still held by Dahlan Iskan.

In the attachment to the regulation of BUMN Minister Erick Thohir, it is stated that the salary of members of the board of directors is set at 85 percent of the salary of the president director. The difference with Dahlan Iskan's rules is that the salary for members of the board of directors is set at 90 percent.

In addition to lowering the amount of the board of directors' salaries, Erick also provided a new salary formula for the vice president director (Wadirut). The vice president's salary is set at 95 percent of the president director's salary.

Meanwhile, the main director's salary is determined using internal guidelines set by the minister. Erick's rules have not changed from the old rules, aka the CEO's salary has not been reduced.

Erick Thohir also set guidelines for managing director salaries at holding holding SOEs. Namely following the calculation of numbers before the consolidation company. This means that the managing director's salary in holding companies is the same as the managing director's salary.

Meanwhile, the formula for the amount of salary for the main commissioner or chairman of the supervisory board did not change, namely 45 percent of the president director. Likewise with members of the board of commissioners or members of the supervisory board, which is still 90 percent of the main commissioners.

In the revised regulation, Erick also set a special salary for the deputy chief commissioner or deputy supervisory board, which is 42.5 percent of the president director. Previously, there was no specific amount of salary for this position.

Still under the same rules, Erick also changed the rules for granting bonuses or work incentives for members of the board of directors, the board of commissioners and the supervisory board of BUMN. The provision of bonuses, for example, may be done if the BUMN has received a minimum of Acceptable Exception status (WDP) for its financial statements.

The second condition, BUMN must also get a profit of at least 70 percent of the target of 100 percent. Then, the achievement of the key performance index (KPI) is at least 80 percent, and the company does not lose.

Tantiem is an award given to directors, commissioners and secretaries of commissioners of BUMN every year if they are able to earn company profits.

The provision of bonuses or work incentives is given proportionately based on the achievements of the KPI in the year concerned provided that the KPI also considers the criteria for achieving the task as a development agent, including dividend contributions to the state or other indicators determined by the GMS or the minister in the Work Plan and Company Budget. (RKAP) for the year concerned.

The tantiem calculation uses the guidelines set by BUMN Minister Erick Thohir. As for the tantiem calculation, it can be different for each BUMN by taking into account the company's performance and special conditions in the company's business.

The tantiem component has also changed, with the deputy managing director 95 percent of the managing director where previously none existed. Then, the amount of bonus for directors is 85 percent from the previous 90 percent of the main director.

Meanwhile, the tantiem for the main commissioner or chairman of the supervisory board 45 percent of the president director and members of the board of commissioners or the supervisory board 90 percent of the main commissioner. Meanwhile, the deputy chief commissioner or deputy supervisory board is entitled to a bonus of 42.5 percent from the president director.