ERICK THOHIR MAKES IT EASIER FOR GOOD CORPORATE GOVERNANCE

KUALA LUMPUR, Feb 25 (Bernama) -- Good corporate governance (GCG) helps state-owned enterprises (SOEs) increase their value, investor confidence, develop businesses and manage risks. Therefore, SOEs must implement GCG to fulfill their responsibility to the country, shareholders and the public, according to analysts.

In Indonesia, GCG implementation has been mandated at all SOEs under Erick Thohir’s leadership as SOEs Minister.

According to Thohir, all SOEs must apply the five GCG principles outlined in the SOEs Minister’s Regulation Number PER-09/MBU/2012 concerning Amendments to the SOEs Minister Regulation Number PER-01/MBU/2011 concerning the Implementation of Good Corporate Governance in SOEs.

The first GCG principle involves transparency in decision-making and disclosing material and relevant information regarding the company; second is accountability in terms of clarity of function to ensure company management is working effectively; third pertains to the company management responsibility to obey applied law and regulations; fourth is independence in managing the company in a professional way without conflict of interest and pressure from certain parties; while the last is fairness or justice and equality in fulfilling the rights of stakeholders' interests that arise based on agreements, laws, and regulations.

According to a statement, under Thohir’s leadership, several SOEs have implemented GCG.

To comply with GCG principles, state-owned energy company PT Pertamina has increased the involvement of legal institutions in its business processes and company projects.

"We are committed to continued transformation, transparency, and professionalism in the Ministry of SOEs as well as our SOEs. One of our breakthroughs in transparency is opening all SOEs' financial reports to President Joko Widodo and the Finance Minister,” said Thohir, during whose term, the SOEs Ministry also made other major breakthroughs in bureaucratic reform by making bold moves.

Meanwhile, he said the ministry also successfully merged four state-owned port operators Pelindo I, Pelindo II, Pelindo III, and Pelindo IV into one company, with each operating ports in different areas, adding that the Pelindo merger was successfully realised in October 2021.

With this merger, Pelindo has emerged as the eighth-largest container terminal operator in the world, with a total of 16.7 million TEUs.

-- BERNAMA