Dony Oskaria: No Need To Change The Rules For Appointing Foreigners In SOE Directors

Head of BP BUMN Dony oskaria (Photo: Doc. VOI)

JAKARTA - Head of the BUMN Regulatory Agency (BP) Dony Oskaria said there was no need to change the rules related to the appointment of foreign nationals (WNA) or expatriates to lead SOEs as directors.

Dony said the appointment of foreigners as directors of SOEs is possible in Law (UU) Number 16 of 2025 concerning the Fourth Amendment to Law Number 19 of 2003 concerning SOEs.

Furthermore, Dony explained that referring to the regulation, the appointment of foreigners or expatriates as directors of SOEs is possible if it is needed.

"Actually, there are no rules that are changed according to the law. The latest is yes. It allows us if needed," he told reporters at the State Palace, Jakarta, written Tuesday, October 21.

Even so, Dony emphasized that the most important thing is actually how to make improvements to state-owned companies.

"So the most important thing is the seriousness of us making changes to our SOEs," he said.

Referring to Law Number 16 of 2025 concerning SOEs, the criteria for members of the SOE board of directors are regulated in Article 15A. In Article 15A paragraph (1), it is explained that in order to be appointed as members of the Persero Board of Directors, prospective members of the Persero board of directors must meet several requirements:

a. Indonesian citizens;

b. physically and mentally healthy;

c. have no family relationship, either inbreeding or arbitrary in the lineage straight and/or side by side, up to the second degree with the Board of Directors of Persero and the Board of Commissioners;

d. have expertise and experience in managing the Company or the company for a minimum of 5 (five) years;

e. have integrity, leadership, experience, honesty, good behavior, and high dedication to advancing and developing Persero;

f. can carry out the task in full time; and

g. other requirements based on the provisions of laws and regulations regarding the company are limited.

Article 15A paragraph (2) explains that apart from the conditions referred to in paragraph (1), to be appointed as a member of the Persero Board of Directors, individuals who are capable of legal acts, except within 5 (five) years before their appointment have been:

a. declared bankrupt

b. being a member of the Board of Directors, Board of Commissioners, or Supervisory Board based on a court decision with legal force remains stated as the cause of a Persero or Perum being declared bankrupt; or

c. convicted of committing a crime that harms state finances and / or related to the financial sector, and / or other criminal acts with a minimum penalty of 5 (five) years.

Article 15A paragraph (3) explains also under the requirements as paragraph (1) letter a can be determined by BP BUMN.

"The requirements as referred to in paragraph (1) letter a can be determined otherwise by BP BUMN," reads Article 15A paragraph (3).