Danantara Officially Launched, Economist Reveals Good Company Governance Key To Preventing Abuse

JAKARTA - Paramadina University economist Wijayanto Samirin revealed that the application of the Business Judgement Rule principle and the separation of SOE losses from state losses can provide flexibility in innovating and creating level playing fields for Danantara to develop into such as the Indonesian version of Temasek, GIC, or Khazanah.

However, he also reminded that in a business climate full of uncertainty, high levels of corruption, and politicization of SOEs in Indonesia, this step has the potential to be misused for the benefit of certain groups.

To prevent this, Wijayanto emphasized the importance of building good corporate governance or Good Corporate Governance (GCG) as an anticipatory measure against a bad business ecosystem and to avoid abuse behavior.

"The external and internal GCG mechanism must be maximized," he said in his statement, Monday, February 24.

Wijayanto conveyed that external mechanisms must prioritize transparency, including in the selection of key figures, the preparation of strategic regulations and decision-making, by involving the people, the media, and civil society to participate in supervising.

"rates like darkness, create light," he said.

Meanwhile, Wijayanto conveyed that internal mechanisms need to strengthen the role of supervisors, commissioners, audit committees, and internal audits that must be filled by professionals with integrity and non-politicalism, as well as positioned as equal partners, not complementary.

Wijayanto also emphasized the importance of implementing a merit system in choosing the best person to manage the organization and take advantage of Indonesia's credible human resources and integrity, even if necessary, recruiting expatriates to strengthen Danantara.

"Take advantage of Indonesia which is broadly full of credible, professional, and with integrity, as a source of cadres; if necessary, the best export recruitment to participate in advancing Danantara/BUMN. Concomes and nepotism, especially Timses-isms are haram to apply," he said.

Wijayanto reminded that SOEs are an important asset for the future of the Indonesian people and the Government has decided to place SOEs in the Danantara, which must be maintained properly because damage to the Danantara can risk the fate of 287 million Indonesians.

"We need to protect this basket together, if he breaks and spills, it will break and spill the fate of 287 million Indonesians," he explained.

Previously, President Prabowo Subianto said the Anagata Nusantara Resources Investment Management Agency (BPI Danantara) or Danantara Indonesia must be managed properly and transparently. He also emphasized that Danantara must be audited at any time by anyone.

Danantara Indonesia untuk itu harus dikelola dengan sebaik-baiknya, dengan sangat hati-hati, dengan sangat transparan, dengan saling mengawasi saling. Harus bisa di audit setiap saat oleh siapapun, karena ini sekali lagi adalah milik anak dan anak kita, milik generasi berunjut bangsa Indonesia, tuturnya dalam peluncuran Danantara Indonesia, dilansir dari YouTube Sekretariat Presiden, Senin, 24 Februari.

Prabowo said the formation of Danantara Indonesia marks a new era for state-owned enterprises (BUMN).

According to him, state-owned companies are not only business entities, but as national assets that will become development and growth agents.

The SOEs that we view are not only business entities, but as national assets that will become development and growth agents. Fundamentals for economic growth and people's welfare," he explained.

Therefore, Prabowo said, SOEs must operate with high standards. In addition, it must also develop innovations, big ideas, transparency, technological advances, as well as maintain discipline, and prudence.

"As well as commitment to good governance and responsible management," he said.