Wednesday, April 20, 2005


In a country where one third of the economy is controlled by state-owned enterprises with huge political intervention, the selection of its executives often neglects merit system. No matter how good is your professional achievement, if you never invest in political process you will end up only in private-owned enterprises.

No matter how bad is your track record, a close relationship with power holders, is surely valuable to be CEO of state-owned enterprise. And even if you made political investment but went to wrong party, you had risked your job.

Some might say, this argument is only valid under Soeharto’s 32-years authoritarian regime. Especially for those who believe reform (reformasi) movement has changed the way we govern the country.

But wait a minute! Is it a coincidence that different presidents have different CEOs of SOEs?

Look at Pertamina, the largest SOE in Indonesia. Soeharto had Faisal Abdaoe as the last CEO, then BJ Habibie with Martiono Hadianto, Abdurrahman Wahid with Baihaki Hakim, Megawati with Arifi Nawawi and Widya Purnama, and now SBY about to kick Widya out and will have new appointee there. First round already started with major shakeup in board of commissioners where Martiono now as the chairman.

And PT Telkom, the largest listed company in Jakarta Stock Exchange. AA Nasution under Soeharto and Habibie, then Muhammad Nazief under Wahid, and Kristiono under Megawati. In the last few months, many parties have tried to get Kristiono’s post.

The same could be seen in almost all SOEs, especially big companies like Bank Mandiri (the largest bank), Garuda Indonesia (flag carrier), or Jamsostek (the monopoly on social security). SOE Minister Sugiharto just installed new boards in Garuda and Jamsostek. Bank Mandiri will be the next. Partly because of poor handling of bad loans related to high profile businessmen or former military officers, and probably of strong affiliation with previous presidents (Wahid and Megawati).

Analyst Lin Che Wei is seen as the strongest candidate to lead Danareksa (largest investment bank). Che Wei is an advisor for Sugiharto. Is it because of Zas Ureawan’s (current CEO) poor performance? Is it because of corruption committed by the board? Is it because his close relationship with Taufik Kiemas (Megawati’s husband) and bet on looser candidate in presidential election?

Surely most of the executives in SOEs made political investments (not necessarily ideological) but some made right investment (to the winning candidate) and some wrongly and publicly supported the looser. It’s payday for those winning investors. It is the winner takes all.

Labels: , , , , , , ,



Blogger Dr. X said...

Great job! Another decent payday loan site to add to my list! Hope you don't mind I leave mine here,
payday loan in canada

October 05, 2005 3:54 AM  
Blogger Dr. X said...

Great job! Another decent payday loan site to add to my list! Hope you don't mind I leave mine here,
payday loan in georgia

October 05, 2005 10:57 AM  
Anonymous Anonymous said...

Hey, you have a great blog here! I'm definitely going to bookmark you!

I have a Loan site/blog. It pretty much covers Loans related information. We provide online applications, business, residential, we do all loans.

Come and check it out if you get time :-)

October 22, 2005 12:02 PM  
Anonymous Anonymous said...

Very intersting school loan consolidation blog. You might like this school loan consolidation site helpfull : ****

October 22, 2005 2:18 PM  
Anonymous Anonymous said...

Nice blog. Check out mine if you can. Thanks. memphis car finance

October 24, 2005 1:13 AM  
Blogger Swingin80 said...

Cool blog you have. I have a payday loan uk related site. Check it out if you get a chance. The URL is payday loan uk

October 26, 2005 1:25 PM  
Anonymous Anonymous said...

Nice site. Check mine out if you can. cash money millionaire

October 28, 2005 9:28 PM  
Anonymous Anonymous said...

I just came across your blog about free faxless payday loan and wanted to drop you a note telling you how impressed I was with the information you have posted here. I also have a web site about free faxless payday loan so I know what I'm talking about when I say your site is top-notch! Keep up the great work, you are providing a great resource on the Internet here! If you get a chance, please stop by free faxless payday loan

October 29, 2005 11:22 PM  
Blogger Goodman441 said...

Hello, this is a great blog on loan rate, Please visit my site when you get a chance at

November 03, 2005 12:40 PM  
Anonymous Anonymous said...

Just read your blog. Very interesting, I will be sute to bookmark it. Perhaps if you get time you could visit my 30 day payday loan site.

November 04, 2005 12:42 PM  
Blogger Willie said...

I had that happen to me . I sent an email to admin and they took care of it. Payday Loans Cash Advance

November 08, 2005 2:46 PM  

Post a Comment

<< Home