Revealed, This Former Minister Of State-Owned Enterprises Calls Garuda Indonesia Boss Appointment Prone To Intervention

JAKARTA - The Minister of State-Owned Enterprises (BUMN) for the period 2004-2007, Sugiharto, said that the appointment of high-ranking officials of Garuda Indonesia is quite crucial in determining the company's next steps.

According to him, the appointment of high-ranking officials at the state-owned company is considered often colored with certain gaps.

"The selection of Garuda Indonesia commissioners and directors is often not in accordance with best practice as a world class company," he said in a virtual discussion to Save Garuda on Tuesday, June 8.

According to him, this then affects the company's steps in making strategic decisions, especially in relation to business activities.

"Therefore, the potential for intervention is always there," he said.

Sugiharto added, the friction that usually occurs between the principle (government) and management is a systemic problem and almost occurs in all state companies in the world.

"If you can choose the right CEO and are able to mitigate intervention from non-corporate aspects, then the leader will certainly lead the company to the path of success," he said.

Sugiharto then gave an example when he served as the number one person in the Ministry of SOEs and appointed the 10 best CEOs who could eventually increase market capitalization by two to three times.

“I then challenged them not to be so dictated by politicians and it worked. The real proof is when I chose the best CEO of Bank Mandiri, who almost collapsed but managed to get out of trouble and become one of the best banks in Indonesia,” he explained.

For this reason, Sugiharto encourages the government to be able to place the right people in state companies so that they can work professionally.

"There must be someone who dares to go against the flow," he added.

Then when choosing the CEO of a BUMN, he continued, efforts should be made to form a "dream team" from the top ranks of the company so that work harmony occurs for maximum results.

"I have proven that the 10 best CEOs I chose can increase the company's value many times," concluded Sugiharto.