Hit By Traffic Loans, Economists Highlight SOE Governance Under The Ministry Of Finance

Illustration. (Photo: Doc. Antara)

JAKARTA - Senior Economist Ryan Kiryanto explained that PT Indonesian Export Financing Agency (LPEI) or Indonesia Eximbank) is a State-Owned Enterprise (BUMN) that is different from that of most SOEs that are known to the public. Ryan said LPEI is a state company that is under the control of the Ministry of Finance (Kemenkeu), not the Ministry of SOEs.

"Don't just talk about SOEs, people think LPEI is under the Ministry of SOEs, even though it's not," Ryan said in Jakarta, Wednesday, July 3.

Regarding the bad credit case that occurred at LPEI, Ryan considered this because he did not follow the GRC principle, namely good corporate governance (GCG) or good corporate governance, risk management or risk management, and compliance or compliance with the provisions of the legislation that passed. Ryan emphasized that the application of GRC principles is very crucial for SOE management under the Ministry of SOEs and other ministries.

"That's all the recipe. If (GRC principles) are carried out, the performance will be good," said Ryan.

The Associate Faculty of the Indonesian Banking Development Institute assesses that the steps taken by the Ministry of SOEs are focused on transformation according to the basic principles of the GRC. This is then strengthened by the core values of morals which must be implemented by every BUMN.

"BUMN under the Ministry of SOEs has good work culture value, morals, that's cool, but SOEs that are out of the control of the Ministry of SOEs, for example, LPEI does not use morals because it is outside the supervision of the Ministry of SOEs," Ryan continued.

Ryan said that the positive achievements of SOEs under the Ministry of SOEs in recent years could not be separated from the election of a reliable board of directors and commissioners. Ryan gave an example of how selective the requirements to be a director at a state-owned bank are.

"The question is whether in state companies outside the Ministry of SOEs there is also no selection process like this being carried out. Even if it is done according to the rule of the game, is it not?" Ryan asked.

Ryan reminded that the management of SOEs is not an easy matter. Ryan conveyed that the Ministry of SOEs, which has made a number of major breakthroughs through transformation, is still faced with a number of problems in several SOEs.

"Of course, not all of them have good performance under the supervision of the Ministry of SOEs, there are still some who have problems such as pharmaceutical SOEs that have fraud," said Ryan.