Jakarta – State Minister of State Enterprises Sugiharto finally disclosed on Thursday 16 state enterprises allegedly riddled with corruption, following demands from lawmakers who wanted to make the allegation widely known. During a hearing with House of Representatives Commission VI for trade, industry and state enterprises, Sugiharto said he had submitted the report on the allegation to President Susilo Bambang Yudhoyono recently.
The state minister said the graft included procurement kickbacks, unfair and opaque bidding processes, manipulation of financial reports and illegal fees.
The allegations are based on an internal investigation conducted by the Office of the State Minister of State Enterprises using the companies financial reports as well as audit reports from the Supreme Audit Agency and the State Development Comptroller.
The disclosure bolstered Susilo's campaign to combat corruption. State enterprises have long served as cash cows for unscrupulous officials as well as for organizations and political parties.
By maximizing state enterprises' performance, the government expects to reap more proceeds to help plug the widening state budget deficit due to the fuel subsidy.
Commission VI member Nusron Wahid said the government should identify what drove the losses and graft in the companies in order to be able to take the necessary steps in the future to address the problems.
"We should identify the root of the problem. If it's mismanagement, the option is restructuring the management. If it's not, another options could be privatizing the firms," he said.
Alleged corrupt SOEs
- Bank Rakyat Indonesia Banking
- Bank Mandiri Banking
- Bank Negara Indonesia Banking
- Perusahaan Listrik Negara Power
- Asuransi Jiwasraya Insurance
- Perusahaan Gas Negara Energy
- Indofarma Pharmaceutical
- Rajawali Nusantara Indonesia Trading
- Pupuk Kalimantan Timur Fertilizer
- Angkasa Pura I Airport operator
- Pelabuhan Indonesia II Seaport operator
- Pelabuhan Indonesia III Seaport operator
- ASDP Transportation
- Djakarta Lloyd Shipping
- Televisi Republik Indonesia Television station
- Radio Republik Indonesia Radio station
[Source: Office of the State Minister of State Enterprises]