President Joko Widodo has again made efforts to “clean up” in the management of state-owned companies or State-Owned Enterprises (BUMN). Last week, June 8, the president signed Government Regulation (PP) number 23 of 2022 which is an amendment to PP number 45 of 2005 concerning the establishment, management, supervision and disbandment of BUMN.
The new PP regulates various things, such as the requirements to become a member of the board of directors and commissioners of SOEs to delegating responsibility to the commissioners if a state-owned company suffers a loss.
Some of the new provisions regulated in the PP, among others, prohibit members of the board of directors of SOEs from holding political positions. The prohibition is a change from the previous Article 22 Paragraph 1 PP.
“Members of the Board of Directors are prohibited from being administrators of political parties and/or legislative candidates/members, candidates for regional heads/deputy heads and/or regional heads/deputy heads,” the PP reads. Paragraph 2 of the PP states that this prohibition will be set forth or further regulated in a Ministerial Regulation (Permen).
PP number 23 of 2022 also stipulates that all BUMN commissioners must be responsible if the state-owned companies they manage experience losses. This is stated in article 59 paragraph 2.
“The Commissioners and the Supervisory Board are personally responsible for the loss of the BUMN if the person concerned is guilty or negligent in carrying out his duties in accordance with the provisions as referred to in paragraph (1),” the regulation reads.
Even so, the PP states that members of the Commissioners and the Supervisory Board do not need to be responsible for the losses of the BUMN companies they manage if they are proven to have carried out supervision and good faith and prudence for the interests of the Company/Perum in accordance with the aims and objectives of the Company/Perum. Then, he has no personal interest, either directly or indirectly, in the actions of the management of the board of directors who have suffered losses, and has provided advice to the board of directors to prevent the occurrence or continuation of such losses.
In Article 27 paragraph 3, it is stated that the Minister of BUMN is allowed to sue the directors of BUMN to court, if it is proven that they contributed to the loss of the state-owned company. “On behalf of Perum, the Minister may file a lawsuit against a member of the Supervisory Board who due to his/her mistake or negligence has caused losses to Perum,” the article reads.
Implementing and Monitoring
Public policy observer Trubus Rahadiansyah said that basically the rules made by Jokowi are good enough so that all state-owned companies are more professional. Unfortunately, the implementation and supervision in the field did not go well, so he saw that the PP would not be effective.
He gave an example, there are still many people from the government coalition political parties who serve as commissioners in various state-owned companies. According to him, this can be prevented if the Minister of SOEs himself strictly implements the regulation.
“So there’s no one supervising it at all. So, they just went in, and that was a recommendation from the party. The bargaining position of the SOE Minister himself is weak when faced with this situation, because our system is a multi-party presidential system. This means that a president is supported by many parties. Because there are many political parties, like it or not, these political parties must be accommodated to sit in the government, one of which is in the BUMN,” Trubus told VOA.
Regulations that require commissioners to be responsible if the companies they manage make a loss, according to Trubus, are also difficult to implement. The reason is, the problems or losses experienced by these state-owned companies have generally been going on for quite a long time.
“Then, how law enforcementher in the field? For example, the directors claim that they have worked optimally, and don’t know there is a loss, they can easily fix it, they could say that even though there was a loss in the leadership era of a director or BUMN, they would definitely say continue from before, so what? want law enforcement?,” he said.
Furthermore, Trubus suggested the existence of an institution for supervision and law enforcement in the field, because if not, the “clean-up” action of this state-owned company would not be optimal.
“There should be a body that supervises it, because if you rely on law enforcement officers, you can’t. For example, the Police, the KPK or the Attorney General’s Office seem impossible, because they have heavy duties and responsibilities. So there must be a new institution that functions to oversee all BUMN and BUMD. So that BUMDs are also not used as cash cows for officials or regional heads,” he concluded. [gi/ka]