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Erick Thohir flexes muscles to put SOEs in order

Erick, who replaced Rini Soemarno as part of Jokowi’s second term in office, has vowed to carry out an extensive reform of SOE management.

Riska Rahman (The Jakarta Post)
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Mon, December 9, 2019 Published on Dec. 9, 2019 Published on 2019-12-09T08:52:24+07:00

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Erick Thohir flexes muscles to put SOEs in order SOEs Minister Erick Thohir. (JP/Seto Wardhana)

S

tate-Owned Enterprises (SOEs) Minister Erick Thohir has shown his commitment to overhauling the country’s SOEs by making several controversial decisions, but concerns over transparency remain.

Among them was the dismissal of state-owned flag carrier Garuda Indonesia president director Ari Askhara, who allegedly used his position to smuggle a second-hand Harley-Davidson motorcycle and Brompton folding bicycles via the airline’s Airbus A330-900 Neo ferry flight from France.

The newly appointed minister, who replaced Rini Soemarno as part of President Joko “Jokowi” Widodo’s second term in office, has vowed to carry out an extensive reform of SOE management.

His decision to replace Ari received a positive reaction from the public, who often describe state-owned companies as cash-cows of senior government officials and their cronies.

Read also: Garuda boss sacked amid Harleygate

Said Didu, former secretary of the SOEs Ministry for the 2005-2010 period, said Erick’s maneuver was needed to resolve the many problems plaguing SOEs.

“SOEs have been unprofessionally managed for the past five years, with too many obligations from the state,” he told The Jakarta Post on Friday, adding that mismanagement only burdened these companies further and increased their debt.

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