Prabowo Orders Rosan to Overhaul BUMN Leadership to Boost Performance
Main Takeaways
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JAKARTA, investortrust.id – President Prabowo Subianto has ordered Rosan P Roeslani, CEO of Danantara Indonesia, to carry out a comprehensive evaluation of all directors and subsidiaries within Indonesia’s state-owned enterprises to ensure a unified vision and professional governance across the system.
Speaking at the Town Hall Danantara Indonesia attended by representatives of 844 state-owned enterprises at Jakarta Convention Centre on Monday, Prabowo emphasized the need for clean leadership and warned against repeating past management failures.
In his directive, Prabowo stressed that the evaluation must be thorough and involve collaboration with both domestic and international advisors to ensure the selection of competent, ethical, and committed leaders.
“We are conducting evaluations not only internally within Danantara but also by working with advisors from within and outside the country,” Rosan said after the event.
Prabowo’s call for reform underlines a broader effort to strengthen corporate governance, improve transparency, and reinforce accountability across Indonesia’s state sector.
Targeting Profit Growth Through Stronger Leadership
The evaluation aims to ensure that directors not only demonstrate professional competence but also uphold strong character and commitment, crucial for achieving significant profit growth targets set by the government.
“This must be done while prioritizing good corporate governance, ensuring accountability, transparency, and a focus on sustainability,” Rosan explained.
He added that Prabowo repeatedly reminded executives that past misconduct and inefficiencies must not be allowed to persist, and emphasized that state-owned enterprises must be led by professionals with clean records.
The 3K Principles: Character, Competence, Commitment
In his address, Rosan also introduced the key leadership standards known as the "3K" principles: Character, Competence, and Commitment.
First, he said, all leaders must possess strong character rooted in professionalism, integrity, and national values as outlined by Indonesia’s Constitution and the state philosophy of Pancasila.
Second, leaders must exhibit competence not only domestically but also in navigating global challenges. “Competence must continue to grow to meet the demands we face, both at home and abroad,” Rosan said.
Third, commitment was highlighted as equally vital, particularly commitment to good governance practices, transparency, integrity, and full compliance with legal frameworks.
Rosan underscored that with these principles, Danantara and the broader state enterprise sector can maximize their contributions to national development.
Closed-Door Session: Prabowo Personally Reprimands Directors
While the town hall session was initially anticipated to be open to the media, Prabowo decided to deliver his directives behind closed doors.
Speaking after the event, Prabowo explained that he opted for a private setting because he issued stern reprimands to several directors of state-owned enterprises.
“It was a closed session because I had to reprimand a lot of the directors,” Prabowo said, adding, “It would not have been appropriate to scold them in front of you [the media].”
Prabowo’s address was delivered after introductory remarks from Minister of Investment and Head of the Investment Coordinating Board, Rosan Roeslani, who also serves as CEO of Danantara Indonesia.
The event was attended by around 1,500 top executives from across the state enterprise system, along with several key cabinet ministers, including Coordinating Minister for Economic Affairs Airlangga Hartarto, Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono, Coordinating Minister for Social Development Muhaimin Iskandar, Coordinating Minister for Food Security Zulkifli Hasan, Minister of State-Owned Enterprises Erick Thohir, and State Secretary Prasetyo Hadi.