BP BUMN Asked To Be Transparent To Explain To The Public About Foreigners Being Directors

BUMN (Photo: Doc. VOI)

JAKARTA - The State-Owned Enterprises Regulation Agency (BP BUMN) was asked to be transparent in explaining the appointment of foreign nationals (WNA) as directors to prevent information bias.

This was conveyed by Managing Partner of DNP Law Firm, Febri Diansyah in response to the polemic of the appointment of Balagopal Kunduvara as Director of Finance and Risk Management and Neil Raymond Mills as Director of Transformation of PT Garuda Indonesia (Persero), Tbk.

"It is necessary to transparency the attitudes and regulations of BP BUMN so that this is not biased by the public," Febri told reporters in a written statement, Saturday, October 18.

Febri explained that basically the BUMN Law regulates one of the requirements to become a Director of SOEs is Indonesian citizens. This provision is regulated in Article 15A paragraph (1) letter a of the BUMN Law.

The article reads as follows: 'To be appointed as a member of the Persero Board of Directors, prospective members of the Persero Board of Directors must meet the requirements: a. Indonesian citizens.'

However, on the other hand, BP BUMN can still appoint foreigners as directors. Febri said, this rule refers to Article 15A paragraph (3) of the BUMN Law which reads: Requirements as referred to in paragraph (1) letter a can be determined otherwise by BP BUMN.

"So there is room for BP BUMN to regulate different requirements to become the Board of Directors of BUMN Persero, one of which is related to the requirements of Indonesian citizens," said the former KPK spokesman.

Even so, Febri said that the appointment of foreigners as directors of SOEs should pay attention to several things.

"It is better if the consideration regarding citizenship also sees harmonization with other related rules and the philosophy of regulation about SOEs," he said.

"On the other hand, it is also necessary to consider the obligations of the parties who are the Directors of SOEs, such as the obligation to Report LHKPN to the KPK, to position as state administrators, and others," continued Febri.

As previously reported, President Prabowo Subianto allowed expatriates or foreigners to become BUMN leaders. The rules he said had been adjusted.

"I have changed the rules. Now expatriate, non-Indonesian can lead our SOEs. So I am very excited," Prabowo said in a dialogue with Forbes Media Chairman Steve Forbes, at the Forbes Global CEO event, Jakarta, quoted Thursday, October 16.

Prabowo further instructed the management of Danantara Indonesia to manage SOEs according to international business standards. The best talent to improve the performance of state companies must also be sought.

Meanwhile, Danantara Indonesia CEO Rosan Roeslani said PT Garuda Indonesia (Persero) Tbk was an early example of implementing the policy. Currently, he said, the company is indeed carrying out a massive transformation.

In the Garuda Indonesia EGMS which was held on Wednesday, October 15, shareholders appointed two foreign nationals (WNA) as directors of the airline company Garuda Indonesia.

They are former Green Africa Airways boss Neil Raymond Mills, appointed Director of Garuda Indonesia Transformation, and Singapore Airlines official Balagopal Kunduvara, appointed as Director of Finance and Risk Management of Garuda Indonesia.

"If we look at the example of Garuda, this is the first to have a 25-year career at Singapore Airlines. The second is that it has been a very, very long career at Iberia Airlines, in three companies or four other airlines. So that's what we are for the Chief of Transformation because a very significant transformation is needed from Garuda," he said when met in the South Jakarta area, Thursday, October 16.