Not Fulfilling KPIs And Not In Line With Morals, Erick Thohir: Commissioners And Directors Of SOEs Must Be Ready To Be Removed

JAKARTA - The Ministry of State-Owned Enterprises (SOEs) emphasized that the appointed directors and commissioners of SOEs must be ready to be dismissed, if their performance does not meet the predetermined Key Performance Indicators or KPIs.

SOE Minister Erick Thohir said the directors and commissioners of SOEs had great competition demands in the future. Therefore, he said, they must be ready to learn and transform so they can have the appropriate capabilities.

"The future demands to compete are very high in the midst of changes and an increasingly open market. Therefore we must be the best. Remember, each director and commissioner is not only ready to be appointed, but must be ready to learn and transform to have world-class leadership capabilities, as well as ready to be removed if they do not meet the KPIs, and are not in line with the core values of AKHLAK and GCG," he said in an official statement, as quoted on Wednesday, June 9.

Furthermore, Erick said the Ministry of SOEs had established the SOE Leadership and Management Institute (BLMI). This institution aims to build leadership capabilities on earth that are world-class based on morals and are able to compete at the global level.

BLMI is a center for research, innovation, collaboration, and management and leadership development in all BUMN clusters. Erick said the formation of this institution was in accordance with the transformation efforts launched by the Ministry of SOEs for state-owned companies to become accountable, professional, and world-class companies, impossible without the transformation of human capital.

"That's why we built a program that is not ad hoc, but structured, comprehensive, and sustainable, namely the BUMN Leadership and Management Institute," he said.

The Ministry of SOEs has appointed Mandiri Corporate University as the coordinator, to synergize with Corporate Universities from Telkom, Pertamina, and WIKA in building roadmaps and leadership development programs ranging from new entry level, first level managers to directors and commissioners/supervisors.

The initial focus of this leadership development will start from the commissioners/supervisors and directors by cooperating with leading local and global business schools as strategic partners such as the Indonesian Institute of Corporate Directors (IICD) for the Onboarding Commissioner Program and the Commissioner Learning School.

Then, IPMI International Business School for the Onboarding Directorship Program; INSEAD and the Indonesian Banking Development Institute (LPPI) for the Chief Financial Officer School.

Then also collaborated with the Michigan Ross School of Business and the Indonesian Human Capital Forum (FHCI) for the Chief Human Capital Officer School program, as well as business school no. 1 in the world IMD Business School for the CEO Learning Forum program.

BLMI has started its inaugural activity in January 2021 by organizing the first batch of the Onboarding Directorship Program. On Wednesday, June 9, BLMI will simultaneously start the second batch of the Onboarding Directorship Program and the first batch of the Onboarding Commissioner Program.