Erick Thohir's Way To Make BUMN Work Not Debt To Vendors: Funding Directly To Projects

SOE Minister Erick Thohir (Photo: Mery Handayani/VOI)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir admitted that he had a way to prevent state-owned companies in the work sector from having debts to vendors. The trick is direct funding into the project.

Erick explained that previously the funding went to corporations, but now it has been changed to direct projects.

"So the issue of vendors being harmed, yes, this is why we are fixing it, now the funding goes directly to the project, not to the corporation," he told reporters written Monday, May 6.

According to Erick, with direct funding into the project, the payment of vendors can be completed immediately.

"So that if there is a project, there is a vendor, we will immediately finish it," he explained.

Erick said that project funding and vendor payments were complicated before, such as tangled threads. Therefore, said Erick, his party will make improvements to governance.

"Yesterday, if the Sundanese said pabaloeut, it has become a tangled thread. But we are not discouraged, that's why we fix everything," he said.

Meanwhile, Deputy Minister of BUMN Kartika Wirjoatmojdo said direct funding for this project could also avoid fraud that could cause financial losses to the BUMN Karya project.

Funding goes directly to the project. So now we are all directly included in the project funding, marked one by one. So that no funding is misappropriated to other things," he said.