Jakarta – State-owned Enterprises Minister Erick Thohir has issued a circular meant to end the notorious practices of distributing souvenirs during state companies' shareholders meetings, citing efficiency and good governance.
However, non-state shareholders in publicly listed state companies are exempt from the new ruling issued earlier this week.
"As part of our efficiency measures and the implementation of good corporate governance principles, any shareholders meeting in [state-run] limited liability companies and annual general meeting in public companies are not allowed to distribute souvenirs to anybody," the Dec. 7 circular signed by Erick reads.
Non-state shareholders may still be allowed to receive 'reasonable' souvenirs in order to achieve a minimum level of attendance on which the shareholders are legally competent to make business decisions.
The circular says that SOEs are more than just a business entity, but also an arm of the government to work for public prosperity.
Erick has taken several bold moves in recent months. The former president of Italian football club Inter Milan recently recruited reform-minded former governor Basuki Tjahaja Purnama as chief commissioner of state-run oil company Pertamina.
On Thursday, Erick fired flag carrier Garuda Indonesia president director I Gusti Ngurah Ashkara for smuggling a Harley Davidson motorcycle and two Brompton bicycles, which were found inside the airline's brand new Airbus A330-900 plane being delivered from France.