Danantara Boss Dismantles BUMN: Deposit Dividends From Debt

CEO of Danantara Rosan Roeslani (Photo: Mery Handayani/VOI)

JAKARTA - CEO of Danantara Indonesia Rosan Roeslani has been outspoken about the unhealthy financial practice that has been happening in a number of State-Owned Enterprises (BUMN). He said there are state-owned companies that are willing to owe in order to pay dividends to the state.

Furthermore, Rosan emphasized that such practices would no longer be left under his leadership.

"I said, under Danantara, under my leadership, there are no more SOEs that do things to beautify books or look big profits, but dividends must borrow money first," he said at the Berdikari Bersama Danantara Indonesia event: Economic Transformation Towards Golden Indonesia, in Jakarta, Monday, October 20.

"And this applies. Wow sir, our dividends are large. Okay, the dividends are sent. Later sir, we have to borrow money from the bank first," he continued.

Moreover, he said, commissioners who should be responsible for supervising to maintain a profit margin actually participate in the practice of beautifying these financial reports.

"Commissioners also encourage high profit but in what way? In other words, beautify books. Beautify books, in other words, the financial statements are distinguished so that they are more beautiful, sometimes they dare to do fraud," he said.

Rosan said the practice of beautifying this book had become a big homework that had to be done immediately. Therefore, continued Rosan, reform of SOE governance is the main focus of Danantara.

"Next year I will correct several books of development companies, including the big ones, because the reports are not appropriate and not true," he said.

Furthermore, Rosan emphasized that in his leadership he did not tolerate harmful behavior such as corruption.

"And we don't hesitate to take the best possible action," he said.