On the other hand, several state-owned companies are experiencing problems or have not performed well lately. One of them is PT PLN, whose president director position has been vacant since May 2019. Sofyan Basir resigned from that position after being named as a graft suspect by the Corruption Eradication Commission (KPK).
Severe problems also hit PT Krakatau Steel Tbk. Although steel exports rose 300 percent, the company continued to suffer losses, reaching US$ 137.9 million in the first half of this year.
The company is currently running a debt restructuring program to make its performance healthy and competitiveness. It is offering early retirement to employees.
BTN and BRI Labor Unions Support Suprajarto
The BTN and BRI Labor Unions issued a joint statement, rejecting the decision of the extraordinary meeting and supported Suprajarto’s step. “The assignment for Suprajarto to become the BTN president director after previously serving as the BRI president director is an act of harassment,” they wrote.
According to them, BTN has a much smaller capacity than BRI. They agreed with the prohibition on making any political decisions for SOE officials until October.
The two labor unions requested the SOEs Minister to respect the principles of good governance. Moreover, the ministry must also implement banker's career management through a good and open system.
Bank Mandiri's extraordinary meeting of shareholders on Wednesday (8/28) started the wave of the reshuffle in state-owned companies. It was not the bank’s director who got replaced, but the commissioner from government representatives. Rionald Silaban, Sri Mulyani’s former staff at the World Bank, was chosen as the new commissioner.
After BTN held the shareholder meeting last Thursday, two more state-owned companies also held a meeting with the same agenda on Friday (8/13). The two were BNI and PGN. Next week, it will be BRI's turn to hold the meeting.
Indofarma and Kimia Farma will also discuss the plan to replace their directors. The two state-owned pharmaceutical companies will hold a meeting on September 18.
The Center of Reform on Economics (Core) Indonesia Research Director Pieter Abdullah Redjalam believes the change of directors in SOEs is very inappropriate. Moreover, most SOEs have just changed their directors. As Jokowi said, Minister Rini’s step caused a stir.
If he needs to be replaced, Pieter said the SOEs Minister in the new cabinet should be the one to do it. The goal is to be under the vision and mission of the Jokowi government in the second period.
He believes the change of directors is not intended to solve existing problems in SOEs. There is a suspicion that the SOEs Ministry is currently taking political steps. “To place certain people in strategic positions,” Pieter said.