Government Affirms Appointment of Deputy Ministers as SOE Commissioners Based on Strategic Needs

Jakarta – The Indonesian government has emphasized that the appointment of deputy ministers (wamen) as commissioners in State-Owned Enterprises (SOEs) is made based on strategic needs to strengthen cross-sector synergy. This clarification follows Deputy Minister of Trade (Wamendag) Dyah Roro Esti’s public statement regarding her appointment as President Commissioner of PT Sarinah (Persero).

Dyah Roro Esti asserted that her primary responsibility remains focused on serving national interests. She ensured that this dual role would be mutually supportive and would not disrupt her duties at the ministry.

“Clearly, every step will prioritize national interests and optimize government functions,” said Roro.

Roro’s appointment as President Commissioner of PT Sarinah was formalized through an Extraordinary General Meeting of Shareholders (RUPSLB) on May 14, 2025. The change in position is stipulated in the Minister of SOEs Decrees No. SK-126/MBU/05/2025 and SK-127/MBU/05/2025. In its official statement, PT Sarinah’s management explained that this leadership restructuring aims to strengthen the company’s strategic direction under the InJourney holding, particularly in the aviation and tourism sectors.

The practice of appointing deputy ministers as commissioners has once again sparked public attention, although, from a regulatory and ethical perspective, this policy complies with the applicable legal framework. To date, no specific regulations prohibit deputy ministers from concurrently serving as commissioners.

Constitutional Court Decision No. 80/2019 confirms that the deputy minister position is constitutionally valid and may be established according to the ministry’s needs and workload. Meanwhile, Law No. 39 of 2008 only prohibits ministers from holding concurrent positions as other state officials or company commissioners, without explicitly mentioning deputy ministers.

Support for this policy has also come from Herman Khaeron, a member of Commission VI of the House of Representatives (DPR). He emphasized that deputy ministers are permitted to concurrently serve as SOE commissioners as long as there is no conflict of interest.

“There is no law prohibiting it, and as long as there’s no conflict of interest and their presence helps improve SOE performance, it’s permissible,” Herman stated.

He argued that appointing deputy ministers as commissioners could actually strengthen synergy between ministry policies and SOE operations. For instance, if the Deputy Minister of Agriculture were appointed as President Commissioner of PT Pupuk Indonesia, it would enhance the synergy between the agriculture sector and the fertilizer industry.

“Usually, deputy ministers assigned as commissioners have a direct link to the SOE’s core business. For example, if the Deputy Minister of Agriculture becomes President Commissioner of PT Pupuk Indonesia, it can strengthen synergies because the two sectors are interrelated,” Herman explained.

In recent years, several deputy ministers have also been entrusted with commissioner roles to enhance oversight and cross-policy connectivity. The government ensures that this strategy aims to strengthen supervision, synchronize policies, and improve SOE performance to make them more competitive and contribute optimally to the national economy.

In conclusion, the government stressed that each appointment of deputy ministers as commissioners will adhere to the principles of good corporate governance, without disrupting ministerial duties, while supporting the country’s strategic needs in vital sectors.

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