Erick Thohir Prepares Legislation Required For Children And Children Of SOEs To Report LHKPN: Absenteeism Subject To Sanctions!

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir said that he was preparing a regulation at the level of a Ministerial Regulation (Permen) which regulates the obligations of officials in the descendants of SOEs to provide State Administrators Wealth Reports or LHKPN.

“When we become public officials, the trust is very big. One of them is that we support transparent reporting and this is also in line with our program at the Ministry of SOEs which is currently conducting downsizing and consolidation for state companies," he said in a webinar organized by the KPK, Tuesday, September 7.

According to Erick, the current regulation only covers officials within the parent SOE and does not cover subsidiaries.

“According to Law Number 28 of 1999 (regarding the Administration of the State), what is temporarily required is the BUMN company, but the children and grandchildren have not. For this reason, I will issue a Ministerial Regulation that requires the children and grandchildren of SOEs to be able to report LHKPN," he said.

Erick added that his party prepared four strategies to support LHKPN reporting within the Ministry of SOEs.

"First, we instruct all obligated to report in SOEs and must report at the Ministry of SOEs to provide information on their assets through LHKPN in a timely manner," he said.

In fact, Erick admitted that this procedure is part of the mandatory that must be carried out by his subordinates. If not, then sanctions have been prepared for those who violate these provisions.

“Secondly, we periodically monitor this LHKPN reporting. Third, ask the SOE directors to carry out the sanction function if any of their staff does not fulfill the obligation to report LHKPN. And the fourth is to make the LHKPN report as one of the elements of a fit and proper test for promotions, especially for directors," he explained.

For information, under Erick's leadership at the Ministry of BUMN, the number of state-owned companies shrank from 108 to 41 entities. The downsizing cannot be separated from the strategic merger of several companies through a holding scheme.

Meanwhile, the 41 SOEs are divided into 12 major sectors, namely oil and gas (oil and gas), food and fertilizer, mineral and coal, plantation and forestry, manufacturing, health.

Then, financial services, infrastructure, insurance and pension funds, telecommunications and media, tourism, and logistics services.