TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Analysis: Military CEOs at SOEs raise cronyism concerns
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Up in arms: Army personnel march during celebrations to mark the 78th anniversary of the Indonesian Military (TNI) in Banda Aceh, Aceh, on Oct. 5, 2023. (AFP/Chaideer Mahyuddin)
S
ince taking office in October, President Prabowo Subianto has moved quickly to install key allies, many with military backgrounds, into top posts at state-owned enterprises (SOEs). Their appointments span a wide range of sectors from aviation and logistics to mining, prompting concerns over growing cronyism and the erosion of meritocratic principles in corporate governance of SOEs.
Prabowo has shown a clear preference for loyalists with military backgrounds or graduates of SMA Taruna Nusantara (Tarnus) senior high school, a military-style elite boarding school in Central Java that he has long supported. Their appointed roles include chief executive at oil and gas holding company Pertamina, flag carrier Garuda Indonesia, the State Logistics Agency (Bulog) and tin miner PT Timah.
Among the most prominent appointees is former Air Force pilot Wamildan Tsani, who was named CEO of Garuda Indonesia in 2024. A Tarnus graduate, Walmidan’s selection was part of efforts to stabilize the financially troubled national airline. Despite his early exit from military service, his background in aviation was seen as a possible asset, though questions remain about his business acumen.
Walmidan joins a growing list of SOE executives with ties to Tarnus, including Simon Aloysius Mantiri, another alumnus who now leads Pertamina. Both Walmidan and Simon are in their 40s, and their relative youth and limited business experience have prompted scrutiny from analysts, who question whether their appointments reflect their capabilities or political connections.
This February, the government attracted further scrutiny with the appointment of Maj. Gen. Novi Helmy Prasetya as Bulog CEO, which followed his recent promotion as commander general of the Indonesian Military Academy. As an active duty officer with no commercial experience, Novi’s selection appeared to aim at reinforcing Prabowo’s food security agenda amid rising commodity pressures, particularly regarding rice absorption during the harvest season before Idul Fitri.
The blurred line between military service and civilian administration, especially at a strategic institution like Bulog, has fueled widespread concern. This was particularly evident around the time of Novi’s appointment, as the government was pursuing revisions to the Military Law that would further entrench military influence in civilian affairs.
Most recently, the appointment of Col. (ret) Restu Widiyantoro as CEO of Timah has again spotlighted this pattern of appointees with military backgrounds. Restu’s lack of business credentials has deepened public concerns, particularly in view of the appointment of Gerindra Party politician Andi Seto Gadhista Asapa as Timah’s human resources director and the presence of politically connected figures on its board of commissioners, such as Lt. Gen. (ret) Agus Rohman, an aide to former president Susilo Bambang Yudhoyono, and Yuslih Ihza Mahendra, brother to senior law minister Yusril Ihza Mahendra.
