Sumber: Istimewa
The Winner Takes It All– the title of ABBA’s 1980 song – seems to be echoing in Indonesia. Although the new government is not yet established, the key figures have already begun “taking” what they can. Ministerial seats, including Deputy Minister’ positions in the Ministry of Agriculture and Finance, have been filled. In parallel, director and commissioner positions in State-Owned Enterprises (BUMN) have been occupied by individuals who played significant roles in Prabowo Subianto’s rise to the presidency.
According to Infobank Research Bureau, as of early August 2024, 20 BUMNs have experienced changes in their directors and commissioners. Most of these positions are not from struggling BUMNs, but from toptier ones with lucrative salaries, bonuses, and incentives, such as Pertamina and several of its subsidiaries, PLN, PGN, PT Timah, MIND.ID, and PT Hutama Karya. However, some lower-tier BUMNs like Perhutani, Indofarma, and Kimia Farma have also undergone changes.
The reality is that changes in company management are up to the shareholders, and for state-owned companies, the shareholder is the government, represented by the Ministry of BUMN. Indonesia has 142 BUMNs, excluding their many subsidiaries and affiliates, which number in the hundreds, possibly even thousands. Last year, Erick Thohir mentioned plans to dissolve 600 of these subsidiaries and affiliates.
Not all BUMNs are in good health. Some have been perpetually unprofitable and fail to generate dividends for the state. Many BUMNs remain hotspots for corruption, as seen in the recent case of Indofarma’s directors engaging in online loan schemes. However, some BUMNs are reliable dividend contributors, with 20 BUMNs contributing Rp85.5 trillion. These include BRI, Mandiri, Mineral Indonesia (MIND.ID), Pertamina, Telkom, BNI, and PLN, among others.
Despite their contributions, less than 20% of BUMNs contribute to the state’s revenue. Nonetheless, BUMNs have played a vital role in revitalizing Indonesia’s economy, especially during the COVID-19 pandemic. However, some BUMNs continue to drain state funds through national capital injections (PMN). In 2023, BUMN dividends to the state treasury reached 21.9%.
Data indicates that PMN for 2024-2025 amounts to Rp57.96 trillion, which is still less than the dividends received by the state. Not all PMN injections have improved performance; some BUMNs continue to struggle due to mismanagement. The success of BUMNs often hinges on governance and management integrity. Effective corporate governance is essential, as has been evident over the past five years.
However, it is challenging for BUMNs to resist political appointees from those in power. These appointees, often members of the campaign team, must have the necessary qualifications. Simply appointing campaign team members or substandard individuals is not acceptable.
This practice seems poised to repeat itself. Names from Prabowo-Gibran’s campaign team are already appearing among the BUMN commissioners. Notable names include Fuad Bawazir, Grace Natalie, Burhanuddin Abdullah, Andi Arief, and Prabu Siliwangi. The wave of changes among BUMN commissioners is likely to continue, given that 270 campaign team members need positions.
The list of appointees would be even longer if all Prabowo-Gibran campaign team members were counted. Such practices hinder the true health and vitality of BUMNs compared to the private sector. While BUMN leadership can align with government visions, it must adhere to good corporate governance principles.
Moreover, Ministry of BUMN regulations prohibit political party officials from holding BUMN positions. This must be enforced to prevent all sectors from being filled with political appointees, as has been speculated for the Audit Board and potentially even the Corruption Eradication Commission.
The principle of “the winner takes it all” should not apply to BUMNs. There must be room for capable professionals. While aligning with government visions is essential, appointing unqualified individuals solely as a reward is not. The wave of BUMN leadership changes is expected to continue.
Each sector must have its share; otherwise, the country will face continuous PMN injections next year, funds that could otherwise be used to improve healthcare, education, and housing for the people. The winners shouldn’t take it all.
It is challenging for BUMNs to resist political appointees from those in power. These appointees, often members of the campaign team, must have the necessary qualifications. Simply appointing campaign team members or substandard individuals is not acceptable.
According to Infobank Research Bureau, as of early August 2024, 20 BUMNs have experienced changes in their directors and commissioners. Most of these positions are not from struggling BUMNs, but from toptier ones with lucrative salaries, bonuses, and incentives, such as Pertamina and several of its subsidiaries, PLN, PGN, PT Timah, MIND.ID, and PT Hutama Karya. However, some lower-tier BUMNs like Perhutani, Indofarma, and Kimia Farma have also undergone changes.
