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Jakarta Post

Ministry to limit SOEs' expert staff numbers, salaries

Ministry to limit SOEs' expert staff numbers, salaries The State-Owned Enterprises Ministry building on Jl. Medan Merdeka Selatan in Central Jakarta. (Antara/Wahyu Putro A)
News Desk
Jakarta   ●   Tue, September 8, 2020 2020-09-08 12:52 249 e22cd4161040e111d73a5626c436ac41 1 Business State-owned-Enterprises-Ministry,state-owned-enterprises,SOE-Minister,erick-thohir,expert-staff,wages,PLN Free

The State-Owned Enterprises (SOE) Ministry is limiting the number of expert staff members allowed on each SOEs’ board of directors after finding that some staffers were paid hundreds of millions of rupiah every month.

“We found that several SOEs are employing 11 to 12 expert staffers or advisors [as directors]. Some are receiving a monthly wage of more than Rp 100 million [US$6,777],” said Arya Sinulingga, an aide to SOEs Minister Erick Thohir on Monday.

He cited as an example state-owned electricity firm PLN, which he said employed dozens of expert staffers and consultants.

Read also: Government to accelerate state capital injections for SOEs

Responding to the findings, Erick issued a circular in August stipulating that SOE directors can only employ five expert staff members for each firm. The circular also limits their monthly salary to a maximum of Rp 50 million and restricts them from having other sources of income or holding positions at other companies.

Directors are also required to propose their plan of employment for expert staff members to the SOEs Ministry’s deputy for human resources, technology and information for approval.

“The expert staffers have a maximum one-year working term and can be extended for another year. The directors [of SOEs] are authorized to dismiss them at any time,” the circular wrote as quoted by (ris/mfp)