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Erick Thohir vows to clean up mess at state companies

Jakarta Globe - January 2, 2023

Hendro Situmorang, Jakarta – State-Owned Enterprise Minister Erick Thohir said on Monday his office will team up with the State Development Finance Controller and the Corruption Eradication Commission, or KPK, to launch an investigative audit into state-owned companies primarily concerning the management of pension funds.

Top executives from all SOEs will be gathered next week to renew their anti-corruption commitment after state insurers Jiwasraya and Asabri came under prosecutors' investigation into alleged losses of trillions of rupiah due to bad investment decisions and suspected corruption.

"I and the KPK chairman will meet with all state-owned enterprises next week to tell them about the investigative audit," Erick said in a news conference at his office in Jakarta.

He said the government is determined to clean SOEs' reputation as a "safe haven for corruption", noting that pension fund management in most SOEs is in mess and corrupted.

"I have data indicating that [pension funds] are well-managed in 35 percent of SOEs but really troublesome in 65 percent of them. I want to clean up this mess while we still have time," Erick said.

SOEs came under scrutiny over their handling of pension funds after executives of Jiwasraya and Asabri were convicted of corruption and sinister conspiracy with crooked investors that cost trillions of rupiah to the state.

Last month, the minister introduced a policy to put troubled SOE executives, especially those convicted of corruption on the so-called blacklist to keep them from running a state company again.

Source: https://jakartaglobe.id/business/erick-thohir-vows-to-clean-up-mess-at-state-companie