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Jakarta Post

Corruption, mismanagement rampant within SOEs because of lack of oversight: Watchdogs

  • News Desk

    The Jakarta Post

Jakarta   /   Sat, February 29, 2020   /  08:10 pm
The Jakarta Post Image
The android application of state insurer Jiwasraya is shown on a smartphone on Feb. 14. (JP/Jerry Adiguna)

Despite the important role the government has bestowed upon state-owned enterprises (SOEs) for driving the country’s economic growth, corruption and mismanagement remain rampant because of a lack of proper oversight.      State-owned insurer PT Jiwasraya, which has made headlines in recent months, is only the most recent example. The company has failed to pay customers trillions of rupiah for matured policies due to financial troubles. According to the Attorney General’s Office, alleged corruption and investment mismanagement within the company have resulted in Rp 13 trillion (US$910 million) in state losses. The downfall of the state-owned insurer follows the poor performance of steelmaker PT Krakatau Steel last year, when the company found itself in a dire financial situation, leading to the Corruptio...