INDONESIA
Indonesia’s Minister for State-Owned Enterprises (SOEs), Erick Thohir (pictured) has sacked President of State-Owned airline Garuda, Ari Askhara amid allegations Mr Ari used his position to smuggle a second-hand Harley-Davidson motorcycle and Brompton folding bicycles into the country.
News of the sacking came as the newly-appointed Minister vowed to carry out an extensive reform of SOE management.
His decision to replace Mr Ari received a positive reaction from the public, who often describe State-owned companies as cash-cows for senior Government officials and their cronies.
Former Secretary of the SOEs Ministry, Said Didu said Mr Erick needed to resolve the many problems plaguing SOEs.
“SOEs have been unprofessionally managed for the past five years, with too many obligations from the State,” Mr Said said.
“Mismanagement has burdened these companies further and increased their debt.”
Economist at the Centre of Reform on Economics (CORE), Piter Abdullah said the Minister still had to improve transparency, especially in relation to the appointment of SOE leaders.
Some of the other decisions Mr Erick has made during his first month in office were met with controversy, such as appointing former President of State-owned mining holding company PT Indonesia, Budi Gunadi Sadikin and former President of Bank Mandiri, Kartika Wirjoatmodjo as Deputy Ministers.
The appointments came under the spotlight because he had chosen to have two Deputy Ministers instead of maintaining seven sectoral-based Under-secretaries and a Secretary-General, like his predecessor.
Mr Erick said two Deputy Ministers were necessary to help him “professionally manage 142 State-owned firms and quadrillions of rupiah in assets”.
Jakarta, 9 December 2019
