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Jakarta Post

‘We were asked to help Pak Erick’: State firm heads to be named deputy SOE ministers

Budi Gunadi and Tiko are known to be closely connected with outgoing SOE minister Rini Soemarno, who defied Jokowi’s instruction not to shuffle state firms’ management at the end of his first term.

Marchio Irfan Gorbiano (The Jakarta Post)
Jakarta
Fri, October 25, 2019

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‘We were asked to help Pak Erick’: State firm heads to be named deputy SOE ministers Indonesia Asahan Aluminium (Inalum) president director Budi Gunadi Sadikin and state-owned lender Bank Mandiri president director Kartika “Tiko” Wirjoatmodjo speak to reporters in Jakarta on Oct. 25. (Kompas.com/Ihsanuddin)

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he heads of state-owned mining holding company Indonesia Asahan Aluminium (Inalum) and the largest state lender Bank Mandiri met with President Joko "Jokowi" Widodo on Friday to discuss plans to bring them on board as codeputy ministers in the State-Owned Enterprises (SOE) Ministry.

Inalum president director Budi Gunadi Sadikin and Bank Mandiri president director Kartika "Tiko" Wirjoatmodjo appeared at the Presidential Palace in Jakarta on Friday after President Jokowi invited deputy minister hopefuls to meet with him two days after he swore in the new Indonesia Onward Cabinet.

The two state firm heads were tasked with strengthening SOEs under the leadership of SOE Minister Erick Thohir, a media mogul and Jokowi's former campaign team chairman.

Pak Tiko and I were asked [by Jokowi] to help Pak Erick,” said Budi, who is also a former Bank Mandiri president director, after meeting with the President.

“The point is, the President wants SOEs to be competitive, to be global players, to be bigger and to be able to build a solid economy together with the private sector,” said Tiko, who joined Bank Mandiri in 2003 as a strategy and financial analysis department head.

Jokowi also asked them to help elevate SOEs on the world stage, as well as to strengthen the competitiveness of Indonesian talent, added Tiko.

The President is scheduled to swear in the deputy minister hopefuls Friday afternoon.

Budi Gunadi and Tiko were both promoted to their positions as heads of the state firms by former SOE minister Rini Soemarno, whose final months in office were marred by controversies as she reshuffled state firm directors despite Jokowi’s request that his ministers not make any strategic decisions during the lame duck period.

The controversy peaked when Suprajarto, the president director of the most profitable state lender, Bank Rakyat Indonesia, was rotated to lead a smaller state housing lender Bank Tabungan Negara (BTN). Suprajarto said he was never consulted about the decision and declined the appointment.

Tiko and Budi Gunadi said on Friday they would resign shortly from their current positions to take up new roles in the Cabinet.

“I will resign today and there will be an extraordinary shareholders meeting in probably the next 40 days [to approve the resignation],” said Tiko. Bank Mandiri is publicly listed and, therefore, any change to its board of directors requires approval at a shareholders meeting.

“It should be easier for me [to resign] as my company is not publicly listed,” Budi Gunadi added. (prm)

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