Government Ensures No Conflict of Interest in Deputy Ministers Serving as State-Owned Enterprises Commissioners
By: Arif Nugroho
The appointment of Deputy Ministers (Wamen) as commissioners in State-Owned Enterprises (SOEs) has recently attracted significant public attention. This policy resurfaced after several official appointments were announced through General Shareholders Meetings of respective state companies. However, the government firmly assures that this measure does not violate any laws nor creates conflicts of interest, as long as it is carried out with professionalism and high accountability.
As of mid-July 2025, it is recorded that 30 active Deputy Ministers are concurrently holding positions as commissioners or even chief commissioners in various strategic SOEs. This practice is not new within Indonesia’s government ecosystem but is receiving greater public scrutiny in light of increasing demands for transparency and accountability in public institutions. The government views this policy not merely as ordinary appointments but as strategic cross-sectoral assignments.
This step aligns with the spirit of synergy between the executive branch and state corporations, which are currently facing complex global challenges. The government aims to establish a more responsive and adaptive governance structure through the direct involvement of senior state officials in internal reforms of SOEs. Thus, the strategic value and dual role of Deputy Ministers as bridges between bureaucracy and the corporate sector become more tangible.
Legally, there is no regulation prohibiting Deputy Ministers from concurrently serving as SOE commissioners. This has been affirmed by the Constitutional Court (MK) Decision Number 80 of 2019, which explicitly limits dual positions only for ministers and officials equivalent to ministers. Head of the Presidential Communication Office (PCO), Hasan Nasbi, clarified that the Constitutional Court’s decision contains no prohibition against Deputy Ministers serving as commissioners. The court ruling does not mention any clause restricting the position for Deputy Ministers.
This clarification is essential to avoid public misperceptions regarding the dual-role policy. According to Hasan, existing regulations strictly prohibit top cabinet officials from holding dual positions, including the Head of PCO and the State Secretary. However, the same restrictions do not apply to their deputies, who, within the bureaucratic structure, have limited authority and mainly perform technical policy execution. Therefore, the placement of Deputy Ministers in commissioner roles is not a violation but a legally legitimate assignment.
From the legislative side, a similar view was expressed by House of Representatives Commission VI member Herman Khaeron. According to him, no law forbids Deputy Ministers from serving as SOE commissioners. The main emphasis, Herman noted, lies on integrity and avoiding conflicts of interest. As long as these appointments do not create conflicts and instead provide positive contributions to improving SOE performance, there is no reason to reject them.
The presence of Deputy Ministers within SOE boards of commissioners is expected to enhance oversight effectiveness and drive performance transformation of state companies toward higher competitiveness. With their understanding of strategic policies at the ministerial level, Deputy Ministers can provide relevant and comprehensive perspectives in corporate decision-making processes. This is crucial, especially as SOEs are required to compete globally and serve as engines of national economic growth.
Nevertheless, holding dual roles certainly demands a high level of responsibility from the appointed officials. Professionalism and a commitment to balance both roles effectively are key to the success of this policy. The government must also ensure strict internal and public oversight mechanisms to monitor the performance of dual-role Deputy Ministers to maintain accountability.
Transparency is the main key to maintaining public trust in this policy. The appointment process should be conducted openly, with clear criteria and objective considerations. Moreover, regular evaluations of the effectiveness of these dual roles should be conducted to assess how far Deputy Ministers contribute to the advancement of the SOEs they oversee.
Rather than viewing it as a potential conflict of interest, this assignment should be seen as an effort to integrate cross-sectoral policies. In a government era that demands speed and precision, close collaboration between regulators and corporate players becomes essential. The placement of Deputy Ministers in commissioner seats can serve as a strong coordination bridge, accelerating policy synchronization and supporting reform agendas within SOEs.
Ultimately, the primary challenge lies not in legality but in execution and the integrity of the individuals holding the roles. The performance of Deputy Ministers as commissioners must enhance state companies’ competitiveness, strengthen public accountability, and deliver tangible benefits to society.
If these elements can be realized, the appointment of Deputy Ministers as SOE commissioners will not only be legally sound but also strategically appropriate. The government has demonstrated that this step is taken within the broader framework of governance strengthening and not merely as political accommodation.
The writer is a public policy observer.
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