The Appointment Of BUMN Leaders In Indonesia Is Considered Not Independent

Illustration. (Photo: Unsplash)

JAKARTA - Chairman of the Business Competition Supervisory Commission (KPPU), Kurnia Toha, said there are four crucial problems or challenges that must be resolved by state-owned enterprises (BUMN) in Indonesia and throughout the world. This is so that state-owned companies can compete well.

Kurnia said the four challenges were the notes of the Organization for Economic Co-operation and Development (OECD). First, the challenges in establishing an independent and quality BUMN leadership board. This independence can be related to the model for appointing BUMN leaders.

Furthermore, he said, the appointment of BUMN leaders could be determined with the same minimum standard in all BUMN for personnel appointed as heads of state enterprises.

"This is often news. Of course, it is the authority of the shareholders, in this case the government determines who its personnel are. However, in order for this BUMN to become professional and able to compete without losing itself, of course it needs directors who are qualified in their fields, have intuition and enthusiasm. excellent business, "he said, in a virtual discussion, Friday, September 25.

Second, the challenge that must be resolved is to clarify the roles and responsibilities of the state as owner of BUMN and not as manager of BUMN. So it must be separated between the owners and managers of BUMN.

"This can be overcome by providing a clear legal and regulatory framework as well as strong coordination for supervision," he explained.

Third, the challenge of instilling a culture of integrity in BUMN. BUMN culture needs to adhere to the principles of transparency, accountability and strong ethics. Including in terms of strong internal control and ethics. This includes internal controls and an appropriate risk management system.

Finally, the challenge of securing political interests in SOE reform, in this case various high-level dialogues among the government and politicians, is needed in increasing awareness and commitment to strengthening BUMN governance.

"So this is the opinion of the OECD, so this is an organization of developed countries of which we are also members. So this is not a problem for BUMN in Indonesia but also for SOEs around the world.

I see this is still compatible with the condition of BUMN in us. These things need to be improved, "he said.

On the other hand, Kurnia said, basically the monopoly carried out by BUMN is not prohibited by law. He emphasized that what is prohibited from monopoly is the practice of monopolizing or monopolizing it.

"The challenge is how the monopoly that is owned is not misused. So Law Number 5 of 1999 does not prohibit monopolies. Now let's say that even though BUMNs have advantages, they inevitably have to be managed professionally," he said.

Kurnia assessed that BUMN professionalism is very much needed. This is so that state-owned companies are able to compete not only with domestic business actors, but also with foreign business actors.