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Jakarta Post

Erick Thohir to shake up executives at state lenders

  • Made Anthony Iswara

    The Jakarta Post

Jakarta   /   Wed, February 12, 2020   /   07:41 pm
Erick Thohir to shake up executives at state lenders SOEs Minister Erick Thohir at a recent meeting. (JP/Seto Wardhana)

The State-Owned Enterprises (SOEs) Ministry will shake up executives at three state-owned banking giants this week, Minister Erick Thohir said on Wednesday.

Erick, however, brushed off concerns over the reasons for the management reshuffle beyond a regular refreshment of leaders in the nation’s top state banks. The three state lenders that are likely to see new faces in their boards of directors are Bank Mandiri, Bank Negara Indonesia (BNI) and Bank Rakyat Indonesia (BRI). 

"It's normal as long as we can see someone who has great expertise," Erick said in Jakarta during the launch of an SOEs internship program, denying the reshuffle was an “overhaul”.

Bank Mandiri, BNI and BRI have all been scheduled to organize annual general shareholders meetings next week with agendas that include adjustments in corporate management, according to the banks’ disclosures made available to the Indonesia Stock Exchange (IDX).

The management restructuring would be the latest in a series of state firm restructuring efforts to improve SOEs’ performances since Erick took the job in October last year.

The businessman-turned-bureaucrat dismissed seven undersecretaries from their posts in November to make the ministry more efficient in accordance with President Joko “Jokowi” Widodo’s mission. The number of undersecretaries has also been reduced to three from the previous seven.

"All SOEs are being 'refreshed’. Certainly, such plans aim to strengthen them,” SOEs Ministry aide Arya Sinulingga told Kompas.com in Jakarta on Tuesday evening.

As part of the wider government restructuring of SEOs, Deputy SOEs Minister Kartika “Tiko” Wirjoatmodjo said last Thursday that the ministry would close down or merge state-owned companies that have consistently failed to post profits.

He said Minister Erick wanted to reduce the number of state-owned firms to 100 from 142 at present in order to improve efficiency.