The Ministry Of BUMN Admits Many Grandchildren And Great-Grandchildren Of Red Plate Companies Have Stood Without Permits

JAKARTA - The Ministry of State-Owned Enterprises (BUMN) admits that many state-owned companies have not applied for permits to establish business grandchildren and great-grandchildren. In fact, the government requires every BUMN to apply for a permit first.

Special Staff of the Ministry of BUMN, Arya Sinulingga, said that one of the reasons his party made improvements to the children and the great-grandchildren of BUMN was because many companies did not have permits.

"Actually, we have to get a permit. But it turns out that many (grandchildren and great-grandchildren) do not have permits, make them too. That's why we are doing improvements, starting to streamline, and starting to eliminate the company's children and their great-grandchildren because they are considered inefficient," he said, in a virtual discussion, Tuesday. , June 16th.

Arya said that initially there were only about 140 SOEs, then developed to have subsidiaries, grandchildren and great-grandchildren. Currently, there are more than 800 companies under BUMN.

Furthermore, Arya explained, SOEs often make grandchildren and great-grandchildren of businesses because these companies get new projects. The grandson or great-grandson of the business was deliberately made to work on the project.

"So like this, there is project one, immediately making the children and grandchildren a company. There is a joint venture to create a company. For example, an infrastructure project, who is working on it? Yes, the BUMN too, so that all the money goes to the company, then makes a subsidiary. The project is complete. , the subsidiary still exists, "he said.

Not only that, according to Arya, there are state-owned companies that make their grandchildren or great-grandchildren fake businesses. This means that the board of directors, commissioners and projects undertaken by the company are no longer there, but the name of the company remains.

"There are those who are fake, there are no projects, commissioners are not there, but PT is still there. Like it or not, we have to pay taxes. This is what we hope is an orderly administration, it is a big job," he said.

For your information, related to the number of children, grandchildren and great-grandchildren of BUMN, Minister of BUMN Erick Thohir issued a temporary ban (moratorium) on BUMN companies to form subsidiaries and joint ventures.

This prohibition is stated in the Decree of the Minister of BUMN Number SK-315 / MBU / 12/2019 concerning the Arrangement of Subsidiaries or Joint Ventures in BUMN Environment. This rule was set on December 12, 2019.

In this regulation, the reason for this policy is because the government wants to organize and evaluate all subsidiaries and joint ventures owned by BUMN.

The establishment of subsidiaries and joint ventures within SOEs will be temporarily suspended until the SOE Minister revokes the policy. This policy will apply to companies affiliated with BUMN, including grandchildren of BUMN.

However, the establishment of a subsidiary or joint venture company that participates in tenders and or is currently carrying out BUMN projects in the field of construction services and or toll road concessions is exempted.

The board of directors who is supported by the board of commissioners and the supervisory board must also apply for a license to establish a subsidiary and a joint venture with a team formed by the Ministry of BUMN.

State-Owned Enterprises (BUMN) Minister Erick Thohir admitted that he had cut 35 state-owned companies. He explained that initially there were 142 companies, while only 107 BUMN remained.

Erick said, this step was part of the company's efficiency within the BUMN. Moreover, President Joko Widodo (Jokowi) has issued presidential decree (Kepres) number 10 of 2020 concerning the formation of a team to accelerate the restructuring of BUMN.

"Thank God, the President has issued a Presidential Decree regarding the formation of a BUMN restructuring acceleration team, but it is limited to merging or liquidating it, but that does not mean selling its assets," he said, in a working meeting with Commission VI, Tuesday, June 9.

It is not enough to stop there, Erick intends to further reduce the state-owned companies which currently number 107 companies. This step is also part of the follow-up action of Keppres 10/2020.

"Of course we will continue to reduce this if we can get to numbers 70 to 80 in the future," he said.

The restructuring of the BUMN business, said Erick, aims to maintain health and improve the performance and internal state of the BUMN. Moreover, the presence of COVID-19 is the right thing to make improvements.