By Giostanovlatto | Independent Columnist | Affiliated with HeyBali.info
In what can only be described as the most audacious power grab in Indonesia’s post-reformasi era, the Prabowo administration has perfected the art of bureaucratic alchemy – transforming mid-level government officials into corporate titans overnight. The brazen appointment of at least 25 vice ministers as commissioners across Indonesia’s strategic state-owned enterprises (BUMNs) represents not just a conflict of interest, but a fundamental perversion of democratic governance.
This calculated move goes beyond mere political patronage – it constitutes a full-scale colonization of Indonesia’s economic commanding heights. While previous administrations engaged in similar practices, the current government has industrialized the process, creating what amounts to a parallel shadow government within the corporate sector. The implications are staggering: key decision-makers now wear dual hats as both regulators and the regulated, creating an institutionalized system of self-dealing that would make even Suharto-era cronies blush.
Yet to dismiss this as mere corruption would be to miss the larger strategic play. These appointments represent the crystallization of a new oligarchic model – one where political power and corporate control become indistinguishable. The administration’s defenders argue this creates policy coherence between government and business. In reality, it represents the final stage of state capture, where public institutions exist primarily to serve private political and economic interests.
What makes this particularly egregious is the timing. At precisely the moment when Indonesia needs truly independent, professional leadership to navigate global economic headwinds and technological disruption, the government has chosen to prioritize political loyalty over competence. The message to both domestic observers and international investors is clear: in the new Indonesia, political connections trump professional qualifications.
This is not governance. This is not even old-fashioned corruption. This is the systematic dismantling of the firewall between public service and private gain – all while maintaining the fiction of bureaucratic reform. The consequences will reverberate through Indonesia’s economy for decades, regardless of who occupies the presidential palace in the future.
The Cast of Characters: A Study in Institutional Absurdity
The current administration’s appointments to Indonesia’s state-owned enterprises (BUMNs) read less like a corporate governance strategy and more like a satirical casting call for a political farce. What we are witnessing is not just the occasional questionable appointment, but a systematic dismantling of meritocracy—replaced by a regime where political loyalty trumps professional competence. Below, we dissect the most glaring examples of this troubling trend:
- The Pop Star Turned Aviation Overseer
Giring Ganesha – Vice Minister of Culture and former frontman of the band Nidji – now sits as Commissioner of PT Garuda Maintenance Facility (GMF AeroAsia), a company specializing in aircraft engineering and maintenance.
- Absurdity Factor: Zero aviation or engineering experience.
- Why This Matters: Aircraft maintenance is a high-stakes industry where technical oversight is non-negotiable. Appointing a musician to this role is akin to putting a novelist in charge of a nuclear reactor.
- The Political Operative Running a Telecom Giant
Diaz Hendropriyono – Vice Minister of Environment – now chairs Telkomsel, Indonesia’s largest cellular operator
- Absurdity Factor: No background in telecommunications, technology, or corporate governance.
- Why This Matters: Telkomsel is a $10 billion+ enterprise critical to Indonesia’s digital future. Leadership should come from industry experts, not political appointees with no relevant expertise.
- The Journalist Managing a Billion-Dollar Telco
Nezar Patria – Vice Minister of Communications, formerly a journalist – now presides over Indosat, a major telecom player.
- Absurdity Factor: Journalism ≠ corporate leadership in a tech-driven industry.
- Why This Matters: Indosat is competing in a cutthroat market against global players. Without deep industry knowledge, its strategic decisions risk being misguided at best, disastrous at worst.
- The Agriculture Deputy Running a Fertilizer Giant (With a Labor Politician in Tow)
Sudaryono – Vice Minister of Agriculture – was just installed as President Commissioner of PT Pupuk Indonesia, the state fertilizer giant. Joining him? Immanuel Ebenezer Gerungan, Vice Minister of Manpower, who also landed a board seat.
- Absurdity Factor: Sudaryono, while experienced in agricultural policy, has zero corporate leadership background in fertilizer production or distribution. Immanuel, meanwhile, is a career politician whose only link to agribusiness is his previous stint as a commissioner at a Pupuk Indonesia subsidiary—another political appointment.
- Why This Matters: PT Pupuk Indonesia is critical to national food security. Its board should be stacked with agribusiness veterans, not bureaucrats with no operational expertise.
- The Immigration Official Overseeing a Tech Titan
Silmy Karim – Vice Minister of Immigration – now serves as Commissioner of PT Telkom, Indonesia’s largest telecommunications firm.
- Absurdity Factor: Immigration policy and telecom infrastructure are worlds apart.
- Why This Matters: Telkom is a strategic national asset in the digital economy. Its board should be filled with tech and business strategists—not officials whose expertise lies in border control.
The Bigger Picture: A Pattern of Systemic Nepotism
These appointments are not isolated incidents. They reflect a deliberate strategy to consolidate control over Indonesia’s economic pillars by placing loyalists—rather than experts—in key corporate roles. The implications are dire:
- Corporate Governance Erosion: BUMN boards are becoming extensions of political patronage rather than independent oversight bodies.
- Investor Distrust: Foreign and domestic investors will question whether these companies are run for national interest or political expediency.
- Long-Term Damage: When loyalty outweighs competence, inefficiency and corruption flourish.
The Four Fatal Flaws of Indonesia’s Vice Minister-BUMN Commissioner Policy: A Systemic Threat to Governance
- Conflict of Interest on Steroids: Regulators Playing Both Sides
The appointment of vice ministers as BUMN commissioners creates an institutionalized conflict of interest that undermines governance. These officials simultaneously:
- Draft policies that regulate state enterprises (e.g., telecom, energy, finance).
- Oversee the same companies they are supposed to regulate, effectively marking their own homework.
This violates the spirit of MK Ruling No. 80/2019, which bars public officials from dual roles that compromise impartiality. For example:
- Silmy Karim (Vice Minister of Immigration) now governs PT Telkom, despite having no telecom expertise.
- Angga Raka Prabowo (Vice Minister of Communications) chairs Telkom Indonesia, raising questions about regulatory capture in the digital sector.
Result: A rigged system where policy decisions could favor corporate interests over public welfare.
- The Death of Meritocracy: Loyalty Over Competence
BUMNs like Telkom, Pertamina, and BRI are multi-billion-dollar enterprises requiring specialized leadership. Yet the administration’s “bagi-bagi kue” (cake-sharing) approach prioritizes political loyalty:
- Kartika Wirjoatmodjo (Vice Minister of BUMN) chairs BRI despite lacking commercial banking experience.
- Giring Ganesha, a pop star turned Culture Vice Minister, now oversees Garuda Maintenance Facility, an aviation engineering firm.
Impact:
- Talent drain: Qualified professionals are sidelined for politically connected appointees.
- Corporate stagnation: Telkom’s Q1 2025 profits fell 4% YoY, reflecting strategic drift under politically driven leadership.
- A Culture of Easy Money: Taxpayer-Funded Perks
Commissioner roles are lucrative sinecures, not honorary positions:
- Salaries rumored at Rp100 million/month (plus bonuses) for minimal oversight duties.
- Double-dipping: Vice ministers collect government salaries and corporate board fees, funded by taxpayers and BUMN revenues.
Hypocrisy alert: While Prabowo’s administration pledges fiscal austerity, it enriches allies through BUMN boardroom patronage.
- The Hypocrisy of “Reformasi”: Oligarchy in Digital Clothing
The government claims to modernize BUMNs but replicates Suharto-era cronyism:
- Political gatekeeping: Commissioners like Rizal Mallarangeng (Golkar Party) and Diaz Hendropriyono (political dynasty) lack industry credentials.
- Contradiction: The administration condemns corruption while enabling structural conflicts of interest.
Expert warning: Former MK Chief Mahfud MD has decried such appointments as unconstitutional power grabs.
Final Thought: Who’s Next? A TikTok Influencer Running Pertamina?
If this trend continues, we may soon see a social media star appointed to lead PLN, or a retired general with no finance background chairing Bank Mandiri. The line between governance and farce is blurring—and Indonesia’s economic future hangs in the balance.
By Giostanovlatto, an editorial contributor based in Bali and affiliated with HeyBali.info, a platform exploring travel, culture, and human stories from the Island of the Gods.
Source: FG Newswire