Commissioner Competence and Politicization Are Crucial Issues

JAKARTA – Minister of State for the Utilization of BUMN in the era of President Soeharto’s cabinet, Tanri Abeng gave a number of messages regarding improving the performance of state-owned companies, before he died on Sunday (23/6/2024). During his lifetime, this economic observer often conveyed important ideas so that the management of state company businesses could be maximized by shareholders.

One of the highlights is politicization of BUMN .In May 2020, Tanri said that one of the main obstacles for BUMN was when the company was politicized by certain elements. At that time, he asked for no politicization of BUMN so that the company’s performance could grow optimally.

“If the management is messed with. “So this BUMN will never have optimal performance,” he said in a virtual LP3ES discussion in Jakarta at that time.

It doesn’t stop there, the former President Commissioner of PT Pertamina (Persero) also often highlights the problems plaguing BUMN. From matters of business strategy, company management, to the competence of the Board of Commissioners.

According to him, the competence of the Council Commissioner is still a crucial problem, when the company is faced with various situations.

“The problem now is that in this BUMN the commissioners sometimes don’t provide support because of the lack of competence on the board of commissioners, so the directors don’t get support, but sometimes it becomes a burden for them,” said Tanri in a different location.

BUMN performance, he continued, is based on the policies of the company’s Directors. However, regulations will be implemented optimally if there is support from the Commissioner and the Ministry of BUMN.

The problem is, the placement of the commissioner figure is considered inappropriate and therefore affects the company’s performance.

At that time, Tanri suggested that the Board of Directors needed to change its business strategy. The change was from a debt strategy to a strategic partner. Partner strategy is a collaboration or alliance between BUMN and multinational companies that have sufficient resources.

This alliance strategy is believed to be able to boost the performance of state companies and free companies from the shackles of debt. Multinational companies that are BUMN partners are those that have stable finances, the latest technology, good management (best practice management), and broad market access.

“So the change (strategy) of bond debt to strategic alliances is very interesting, I think this can take place,” he said previously.

In the cooperation process, multinational corporations will bring dollars, technology and best management practices that can be utilized by BUMN. Utilization of resources is believed to be able to improve the company’s performance in the future.

(acres)