Good Or Bad News? This New PP Signed By Jokowi Requires The Commissioner To Be Responsible If BUMN Loses

President Joko Widodo (Jokowi). (Photo: Doc. Setpres)

JAKARTA - The BUMN Commissioner must take full responsibility if the state-owned company where he works experiences a loss. The regulation is contained in the latest PP signed by President Joko Widodo (Jokowi).

Jokowi has signed Government Regulation No. 23 of 2022 on 8 June 2022 and was promulgated at the same time by the Minister of Law and Human Rights Yasonna Laoly.

In the latest regulation, quoted by VOI, Seni June 13, the commissioners and supervisory boards of SOEs have an obligation to carry out their duties and must be responsible if the SOEs they manage experience losses (Article 59 paragraph 1).

The responsibilities for the commissioners and supervisory boards of SOEs are described in Article 59 paragraph 2. It is stated that the commissioners and supervisory boards are personally responsible for the losses of the SOEs if they are guilty or negligent in carrying out their duties in accordance with the provisions as referred to in paragraph (1).

This responsibility is in line with the responsibilities that are also assigned to the SOE board of directors. Article 27 paragraph 2 states that each member of the Board of Directors is personally responsible for the loss of the BUMN if the person concerned is guilty or negligent in carrying out his duties.

As for paragraph 1 of Article 59 of PP No. 23/2022 concerning Amendments to Government Regulation Number 45 of 2005 concerning the Establishment, Management, Supervision, and Dissolution of State-Owned Enterprises (BUMN) it is stated that the Commissioners and the Supervisory Board must in good faith and full responsibility carry out their duties for the interests and business of BUMN .

Furthermore, in paragraph 3 it is stated that on behalf of the government, the Minister may file a lawsuit against a member of the Supervisory Board who due to his/her mistake or negligence causes losses to BUMN.