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Erick Thohir brings ‘inevitable’ reforms to SOEs, ministry
It has been less than a month since Erick Thohir took up the position of state-owned enterprises (SOEs) minister, and he has made a string of decisions that have rocked the ministry and enterprises under its supervision
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span>It has been less than a month since Erick Thohir took up the position of state-owned enterprises (SOEs) minister, and he has made a string of decisions that have rocked the ministry and enterprises under its supervision.
The businessman-turned-bureaucrat dismissed seven undersecretaries from their posts, saying on Monday that the restructuring was aimed at making the ministry more efficient in accordance with President Joko “Jokowi” Widodo’s mission. The number of undersecretaries will also be reduced to three from the previous seven officials.
Six of the dismissed echelon I officials will be posted to vice president director positions at several state-owned enterprises, while another one will hold a president director position.
The ministry’s former undersecretary for agriculture and pharmaceuticals, Wahyu Kuncoro, was appointed vice president director of state-owned pawnshop Pegadaian, while former secretary Imam Apriyanto Putro was posted at fertilizer holding company Pupuk Indonesia and former undersecretary for restructuring and business development Aloysius Kiik Ro was posted at state-owned construction company Hutama Karya.
Former undersecretary for financial services, surveys and consultancy Gatot Trihargo will fill the position at logistics agency Bulog, business and infrastructure undersecretary Hambra at port operator Pelindo II and energy, logistics, regions and tourism undersecretary Edwin Hidayat Abdullah at airport operator Angkasa Pura II.
Former mining, strategic industries and media undersecretary Fajar Harry Sampurno was appointed as the president director of Barata Indonesia, a company that works in manufacturing, casting and engineering, procurement and construction (EPC).
“The dismissal of the former undersecretaries is inevitable following a change in leadership in an organization [the ministry],” said Center of Reform on Economics (Core) Indonesia research director Piter Abdullah on Tuesday.
“A new leader [in an organization] will usually have new directions and strategies, and will need a team that he sees fit for it,” he told the The Jakarta Post via text message.
Jokowi highlighted bureaucratic reform in his inauguration speech in October, suggesting initiatives such as reducing the number of civil service echelons from four to two and transforming the economy from one that is dependent on natural resources to one that is competitive in modern manufacturing and services.
Erick said in a statement on Monday that the restructuring at his ministry would entail reducing the number of undersecretaries at the ministry from seven to three. A staff evaluation would soon follow, as streamlining efforts began to pick up pace, he added.
“To manage the ministry’s Rp 8.2 trillion [US$583 million] budget, I need solid teamwork with people who are not only intelligent, but also ethical. I will do my best to ensure that those working for the ministry and state firms are committed individuals,” Erick said.
“The [dismissal] is actually a part of the tour of duty so they can understand the problems in corporations as [deputy ministers]Kartika “Tiko” Wirjoatmodjo and Budi Sadikin understand the bureaucracy problems as they are today,” he said in a statement, referring to president director posts at state lender Bank Mandiri previously held by Tiko and at state miner Inalum, held by Budi.
Given that the ministry already has two deputy ministers who will deal with the business matters of all SOEs, it will reduce the number of undersecretary positions to three from seven, said SOEs Ministry spokesperson Arya Sinulingga, adding that the ministry secretary would be kept.
“We will also add a new person to lead the inspectorate general post that has been left vacant for quite a while,” he said, adding that the inspectorate general would oversee the ministry’s internal governance while the three undersecretaries and one secretary would take care of administrative matters.
He also added that the new undersecretaries would be appointed in the next two weeks. Experienced professionals are expected to fill the positions and they could come from internally or other ministries.
Arya refused to reveal further details regarding the candidates.
“I haven’t seen any downsizing efforts [in the ministry] as two new deputy ministers are actually being appointed [to posts that were inexistent previously],” Piter said. “We need to see where this is going to end up.”
In the last several days, Erick has triggered discussions about top posts at several prominent SOEs as he invited former Jakarta governor Basuki “Ahok” Tjahaja Purnama and former Corruption Eradication Commission (KPK) deputy chairman Chandra Hamzah to his office.
At least four strategic SOEs are in leadership vacuums.
Jokowi is now leading a team tasked with reviewing all SOEs and — if necessary — appointing new president directors, presidential spokesman Fadjroel Rahman said over the weekend.
