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UPDATE 1-Indonesia plans management shake-up at state power utility-minister
December 8, 2014 / 11:53 AM / 3 years ago

UPDATE 1-Indonesia plans management shake-up at state power utility-minister

(Adds confirmation from SOEs minister)

JAKARTA, Dec 8 (Reuters) - Indonesia is planning to review the running of its state-owned enterprises (SOEs), a minister said on Monday, the latest move in a series of reforms aimed at boosting confidence in Southeast Asia’s biggest economy.

State Enterprises Minister Rini Soemarno confirmed the government was planning a management shake-up at state power utility Perusahaan Listrik Negara (PLN) similar to that at state energy firm Pertamina, which last month saw its entire board of directors dismissed and a new chief appointed. Six new directors were added this week.

“We first did an analysis in terms of restructuring management at Pertamina and we will try to do the same thing for other SOEs in the future,” Soemarno told reporters, declining to elaborate on the timeframe of the planned changes.

“How big or small the changes are will depend on the activities of the SOEs themselves,” she said, adding that PLN, which has a monopoly on electricity distribution across the archipelago, would be next.

The management changes could come this month and would include a partial or total replacement of PLN’s board, the Wall Street Journal reported.

President Joko Widodo’s administration, which took office in late October, has been quick to reform struggling SOEs with the aim of boosting infrastructure spending and cleaning up endemic corruption to attract much-needed investment.

Soemarno, former head of Indonesia’s biggest auto distributor PT Astra International, has also called for an end to SOE dividend payments to the government, saying profits will be used for capital expenditure starting in 2015.

Last week, she said she would decide the fate of heavily indebted state carrier PT Merpati Nusantara Airlines over the next few weeks, according to the Jakarta Post. (Reporting by Kanupriya Kapoor and Randy Fabi; Editing by Ed Davies and Nick Macfie)

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