Please Note! President Jokowi Prohibits SOE Directors From Being Managers Of Political Parties, Legislative Candidates And Candidates For Regional Heads

President Joko Widodo. (Photo: Doc. Antara)

JAKARTA - Directors of State-Owned Enterprises (BUMN) are prohibited from being the management of political parties (parpol), legislative candidates to regional head candidates at both the provincial and district/city levels. The regulation is contained in the latest Government Regulation (PP) signed by President Joko Widodo (Jokowi).

The regulation in question is Government Regulation Number 23 of 2022 concerning Amendments to Government Regulation Number 45 of 2005 concerning the Establishment, Management, Supervision, and Dissolution of State-Owned Enterprises (BUMN). The regulation was signed by Jokowi on June 8 and was promulgated on the same day by the Minister of Law and Human Rights Yasonna Laoly.

"Members of the Board of Directors are prohibited from being administrators of political parties and/or legislative candidates/members, candidates for regional heads/deputy heads and/or regional heads/deputy heads," reads Article 22 paragraph 1 of the regulation, quoted by VOI, Monday, June 13.

In Article 22 paragraph 2 it is stated that further regulations regarding the prohibition of BUMN directors from becoming administrators of political parties to regional head candidates will be further regulated in a Ministerial Regulation.

In the regulation, there are new regulations regarding the appointment of SOE directors. Where the appointment of SOE directors is based on a track record. This rule is contained in Article 14 paragraph 1a.

The track record in question is a list and track record of current directors and prospective directors. When establishing the list and track record, the Minister of SOEs may request input from the relevant government institutions/agencies. This rule is contained in Article 14 paragraph 1b.

Meanwhile, Article 14 paragraph 2 states that the appointment of SOE directors can also request input from the Minister of Finance and the Technical Minister.

Whereas in Article 23 it is explained that members of the SOE board of directors can be dismissed at any time based on the decision of the GMS for Persero and the Minister for Perum by stating the reasons.

"The dismissal of a member of the Board of Directors as referred to in paragraph (1) is carried out if based on the fact that the member of the Board of Directors is unable to fulfill his obligations as agreed in the management contract; cannot carry out his duties properly; does not carry out the provisions of the legislation and/or budget provisions. basis; being involved in actions that are detrimental to BUMN and/or state finances; committing actions that violate ethics and/or propriety; being found guilty by a court decision that has permanent legal force; or resigning," reads Article 23 paragraph 2.