Dian Kuswandini, The Jakarta Post, Jakarta | Sat, 06/14/2008 11:07 AM | Business
State Minister for State Enterprises Sofyan Djalil said Friday there is nothing wrong with state officials holding commissioner positions in state enterprises, since they are needed to voice the interests of the people and government.
His remarks come amid a flurry of resignations by directors general at the Finance Ministry from commissioner posts at state firms in support of an ongoing reform launched last year by Finance Minister Sri Mulyani Indrawati.
The move to relinquish positions on the boards of state firms has gained wide support in a country where incompetent bureaucracy and corruption in ministries are cited in many reports by the World Bank, Transparency International and others, as being detrimental to growth.
Sofyan, however, sees it differently.
"State firms are the state's assets; any state firm should have a government representative," he said.
As a shareholder, the government has the right to post its representatives in state companies to oversee its assets, as part of its responsibility to the public, Sofyan said.
Earlier this week, several directors general at the Finance Ministry said they were resigning as commissioners of state firms to support reform and avoid conflict of interest.
Included in that group are the director general of taxation, Darmin Nasution, who is also the president commissioner of the Indonesia Stock Exchange, and the director general of budget, Ahmad Rochjadi, who is also a commissioner at state oil and gas firm PT Pertamina and at state pension fund company PT Taspen.
This reform aims to help flush out corruption from the Finance Ministry by raising salaries, among other measures. Directors general are then expected to focus on their jobs at the ministry.
The Corruption Eradication Commission (KPK) earlier said that top-level civil servants at ministries, including directors general, should avoid doubling up on jobs because it could lead to conflict of interest.
Sofyan, however, insisted that there was no conflict of interest caused by the current double jobs.
"There is no conflict of interest, but there are parallel interests, meaning that state officials (on boards of state firms) work for the public and government's interests, not for themselves."
The secretary to the sinister for state enterprises, Said Didu, admitted the issue of "double jobs" for top state officials is in a gray area and that existing regulations need clarification.
"Therefore, the definition of double jobs and conflicts of interest should be made clear in order to avoid controversy," he said.
The state ministry, Didu said, would work on a joint decree with the Finance Ministry to formulate a regulation on double jobs.
Critics have long said the government should follow international practice in striking a balance between avoiding conflict of interest and protecting the people's and government's interest.
Many governments appoint highly competent professionals to represent them in state-owned companies.
State Minister for State Enterprises Sofyan Djalil said Friday there is nothing wrong with state officials holding commissioner positions in state enterprises, since they are needed to voice the interests of the people and government.
His remarks come amid a flurry of resignations by directors general at the Finance Ministry from commissioner posts at state firms in support of an ongoing reform launched last year by Finance Minister Sri Mulyani Indrawati.
The move to relinquish positions on the boards of state firms has gained wide support in a country where incompetent bureaucracy and corruption in ministries are cited in many reports by the World Bank, Transparency International and others, as being detrimental to growth.
Sofyan, however, sees it differently.
"State firms are the state's assets; any state firm should have a government representative," he said.
As a shareholder, the government has the right to post its representatives in state companies to oversee its assets, as part of its responsibility to the public, Sofyan said.
Earlier this week, several directors general at the Finance Ministry said they were resigning as commissioners of state firms to support reform and avoid conflict of interest.
Included in that group are the director general of taxation, Darmin Nasution, who is also the president commissioner of the Indonesia Stock Exchange, and the director general of budget, Ahmad Rochjadi, who is also a commissioner at state oil and gas firm PT Pertamina and at state pension fund company PT Taspen.
This reform aims to help flush out corruption from the Finance Ministry by raising salaries, among other measures. Directors general are then expected to focus on their jobs at the ministry.
The Corruption Eradication Commission (KPK) earlier said that top-level civil servants at ministries, including directors general, should avoid doubling up on jobs because it could lead to conflict of interest.
Sofyan, however, insisted that there was no conflict of interest caused by the current double jobs.
"There is no conflict of interest, but there are parallel interests, meaning that state officials (on boards of state firms) work for the public and government's interests, not for themselves."
The secretary to the sinister for state enterprises, Said Didu, admitted the issue of "double jobs" for top state officials is in a gray area and that existing regulations need clarification.
"Therefore, the definition of double jobs and conflicts of interest should be made clear in order to avoid controversy," he said.
The state ministry, Didu said, would work on a joint decree with the Finance Ministry to formulate a regulation on double jobs.
Critics have long said the government should follow international practice in striking a balance between avoiding conflict of interest and protecting the people's and government's interest.
Many governments appoint highly competent professionals to represent them in state-owned companies.
