The Corruption Eradication Commission (KPK) Does Not Question The BUMN Bill For The Adoption Of Business Judgement Rules

JAKARTA - The Corruption Eradication Commission (KPK) has no problem with the implementation of the Business Judgment Rule (BJR) in the BUMN Bill. This rule is considered not to just protect officials in state-owned companies when caught in a corruption case.

This was conveyed by the Deputy Chairperson of the KPK, Fitrah Rochcahyanto, when asked about the BUMN Bill, whose meeting was held on Saturday, February 1. There are 11 points in the regulation, one of which is the rules related to business judgment rules or rules that protect the authority of the board of directors in making decisions.

"I don't see that (BJR in the BUMN Bill can be an excuse for perpetrators of corruption, ed). Because regarding the protection of SOE directors, it has been regulated in the law," Fitrah told reporters quoted on Monday, February 3.

Instead of being a pretext for corrupt SOE officials, Fitrah said, the implementation of this BJR could make law enforcement officers be careful in carrying out their duties.

"I am one of those who agree that I must be really careful in implementing Article 2 or 3 (related to state losses, ed) especially in business. There must really be malicious intentions and not just as long as the loss becomes corruption," said the former Director of Prosecution of the KPK.

As previously reported, Commission VI of the Indonesian House of Representatives approved a working committee (Panja) report related to the discussion of the BUMN Bill. This agreement was taken in a working meeting held with the Ministry of SOEs, Ministry of Law, Ministry of Finance, and Ministry of State Secretariat.

The following are the details of the discussion of the Bill on the third amendment to Law Number 19 of 2003 concerning SOEs:

1. Adjustment to the expansion of the definition of SOEs to accommodate SOEs so that they can carry out their duties optimally and in accordance with the provisions of the relevant legislation;

2. Addition of definitions related to BUMN subsidiaries that were previously not regulated in the Existing Law;

3. Arrangements related to the Agency for Child Resources Investment Management Gata Nusantara, Investment Holding, Operational Holding, Restructuring, Privatization, Establishment of Subsidiaries and/or Disbanding State-Owned Enterprises;

4. Business Judgment Rule related settings;

5. Affirmation related to the management of state-owned assets in accordance with the principles of good corporate governance, which is carried out in an accountable manner and based on existing laws and regulations;

6. Arrangements related to human resources where State-Owned Enterprises provide opportunities for people with disabilities and the local community in accordance with statutory provisions. In addition, female employees are given the opportunity to occupy the position of Director, Board of Commissioners, or other strategic positions in State-Owned Enterprises;

7. Arrangements related to the formation of state-owned subsidiaries in more detail include the requirements and mechanisms for their establishment in order to ensure that subsidiaries of State-Owned Enterprises contribute greatly to SOEs and also of course to the state;

8. Arrangements for corporate actions that include the merger, consolidation, takeover, and stricter separation of SOEs in order to create SOEs that are competitive, reliable, and resilient;

9. Arrangements fundamentally related to the privatization of SOEs including SOE criteria that can be privatized along with the mechanism in order to ensure the privatization of State-Owned Enterprises provides benefits for the performance of SOEs, the community, and also for the state;

10. Arrangements regarding Internal Supervision Units, Audit Committees, and other committees; and

11. Arrangements regarding the obligation of SOEs to carry out guidance, training, empowerment, and cooperation with micro, small and medium enterprises, and cooperatives as well as communities throughout the Republic of Indonesia by prioritizing the community in the area around SOEs to be a form of social responsibility and the BUMN environment.