There Is No Problem With The Board Of Directors In BUMN, Erick Thohir: Assessment Based On KPI

Minister of SOEs, Erick Thohir. (Photo: Instagram @erickthohir)

JAKARTA - Minister of State-Owned Enterprises, Erick Thohir, admitted that he did not have a problem if there were directors entrusted to state-owned companies. Because it continues to monitor the development of the performance of the appointed directors.

Furthermore, Erick said that if he was unable to meet the standards or key performance indicators (KPI), he did not wait long to remove them.

"Now the commissioners who have entered want to be said to be by professional progress or there is an order, it's okay, we don't have to be prejudiced. We have to enter the training system because we have issued a system of schools for commissioners", he said during Live Instagram on Wednesday, August 11th.

Erick said that his party will evaluate the performance of the SOE directors periodically so that the company can improve its quality. In addition, Erick also admits that choosing a leader is not easy to do.

In fact, said Erick, in 1.5 years the performance of SOE directors has failed to achieve the KPIs that have been set. Sanctions of removal from office are carried out by reshuffling the board of directors.

"I was also disappointed when I chose some figures who couldn't implement the KPI. I didn't wait for the time to be immediately removed, so it wasn't based on likes or dislikes but based on the KPIs", he explained.

Erick said that to recruit the leaders of state companies, it was done by monitoring talent from the bottom up. One of the criteria that must be possessed by prospective leaders is to be able to give trust to the market of the company concerned.

According to Erick, these criteria are very important because state companies in running their business always cooperate with the private sector, regional governments, and regional business entities.

"We want SOE to cooperate with the private sector, regional government, regional entrepreneurs, and BUMD (Regionally-Owned Enterprises), it is impossible if the leadership has a bad track record. For that reason even the commissioners are now carrying out transformations", he said.