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Broken law, political ambitions tarnish new SOE appointments, house says

Source
Jakarta Globe - March 26, 2012

Lawmakers accused the government on Sunday of violating laws and operating with political motivations in the appointment of directors and commissioners at many state-owned enterprises.

House of Representatives Commission VI, which oversees industry, trade, investment and state enterprises, announced it will immediately summon State Enterprises Minister Dahlan Iskan to explain the appointments.

Airlangga Hartarto, the head of the commission, said lawmakers have received reports from the public complaining that appointed executives were members of certain political parties.

"What we have now is problems regarding the appointment of [ferry operator] Pelni's president director," said the Golkar Party politician. "We have also received complains about the appointments of president directors at [industrial conglomerate] Rajawali Nusantara Indonesia and [plantation company] Perkebunan Nusantara [PTPN]. "All [of these appointments] have violated the regulations."

Edhy Prabowo, also on the commission, said he believes the last-minute appointment of many executives this month were more political than professional because they were not set a year earlier, as stipulated by the law.

"The government has violated the law on state-owned enterprises," he said. "So it [the government] must either change the directors and commissioners or have the law changed."

Indonesia has more than 100 state-owned enterprises, and political parties are competing to control lucrative posts in them as the 2014 elections approach. State-owned enterprises have long been seen as cash cows for corrupt politicians, especially ahead of elections.

The initial public offering of state-owned Krakatau Steel last year, for example, was widely criticized as a mere strategy to help officials in the president's Democratic Party collect money.

Civil society groups have pointed out that many directors and commissioners at state-owned enterprises are members and officials of political parties.

Government Watch (Gowa) recently reported that Patrialis Akbar, a former minister of justice and human rights and a senior member of the National Mandate Party (PAN), was the president commissioner of state coal miner Bukit Asam. (Antara, Suara Pembaruan)

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