State-Owned Enterprises (SOEs) Commissioner Appointments Increasingly Driven by Political Considerations

Transparency International Indonesia (TII) compiled the backgrounds of commissioners serving on State-Owned Enterprises (SOEs). The backgrounds generally consist of bureaucratic positions, strategic roles, state apparatus members, politicians, and professionals. Bureaucratic positions refer to government officials in ministries/agencies or regional governments, including provincial, city, and regency governments.

Similar to bureaucratic positions, strategic roles include former ministers, high-ranking state officials, and members of state bodies or institutions.

Meanwhile, the state apparatus includes law enforcement officials (APH) and the military. APH comprises police and prosecutors.

Politicians are defined as activists from political parties, mass organizations, and volunteers, whom TII also refers to as supporters of those in power.

Finally, professionals are those with private sector backgrounds, such as private entrepreneurs or professionals, SOE employees, and academics.

TII reports that in 2020, there were 482 commissioners and supervisors from 106 SOEs.

"(The results show) only 17.63% of commissioners were appointed from professional backgrounds; the remaining 82.37% were appointed based on political considerations," wrote Danang Widoyoko, TII's Secretary General, in his report to Databoks.

These political considerations refer to the selection of commissioners from bureaucratic positions (51.66%), APH (5.81%), the military (6.02%), strategic roles (4.15%), and politicians (14.73%).

According to Danang, SOEs cannot be separated from politics; their history even shows them as instruments for building patronage.

This condition is "supported" by the position of commissioners, which is the easiest instrument for those in power to build, expand, and maintain political support.

"The magnitude of other interests makes meritocracy in the selection of commissioners and directors of SOEs difficult. SOEs lose focus: are they aiming to generate profits, serve the public interest, or serve the interests of the political elite?" wrote Danang.

The following details the backgrounds of SOE commissioners in 2020, compiled through document research by TII:

* Bureaucracy: 249 commissioners (51.66%)
* Professionals: 85 commissioners (17.63%)
* Politicians: 71 commissioners (14.73%)
* Military: 29 commissioners (6.02%)
* APH: 28 commissioners (5.81%)
* Strategic Positions: 20 commissioners (4.15%)
* Total: 482 commissioners (100%)