Erick Thohir: I'm Not Closing My Eyes, Assignment In BUMN That's Tends To Corruption

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir admits that various assignments at state-owned companies are prone or have the potential for corruption.

However, said Erick, this can be controlled and overcome through the BUMN Law (UU).

Furthermore, Erick said, in the BUMN Law, he proposed that the company's entire assignment must be agreed upon by three ministers.

The ministries in question are the ministers who assigned, the SOE ministers, and the finance ministers.

"I do not turn a blind eye to us, the assignments at SOEs are tend to corrupt, that's why we change them now. All assignments in SOEs must be agreed upon by three Ministers, Ministers who assigned, Ministers of SOEs, and Ministers of Finance," said Erick via short video uploaded to his official Instagram account @erickthohir, quoted Friday, October 7.

In the process of assignment, continued Erick, the relevant ministries that provide assignments must also spend the budget to the company.

Erick explained the injection of funds with a note that the relevant ministries have sufficient budget.

On the other hand, if the ministry gives an assignment but does not have a budget, then BUMN funds are needed.

The company's funds in question are in the form of government injections or injections of state funds through State Equity Participation (PMN).

"So that the budget can be seen. If there is a budget for the minister who assigns a budget, don't use a BUMN budget. If it turns out that he doesn't have a budget, use a BUMN. Because this is a corporate option for two, if it's not feasible, government injection, the name is PMN," he said.

Regarding PMN, Erick emphasized that as many as 70-80 percent of PMN given to state-owned companies were used to carry out assignments from the government.

"The PMN has a bad perception, it's wrong. Because PMN is 70-80 percent assigned. There is no rescue. (This is for) assignments. It was only not transparent before, now with the agreement of three ministers, (so) everything is transparent. And we encourage this in the BUMN Law," he said.