The Corruption Eradication Commission (Komisi Pemberantasan Korupsi or KPK) requires foreign national directors of state-owned enterprises (Badan Usaha Milik Negara or BUMN) to report their wealth.
One of the latest requirements introduced by the KPK is that foreign nationals serving on the boards of directors of BUMN must submit their State Officials’ Wealth Reports (Laporan Harta Kekayaan Penyelenggara Negara or LHKPN). This requirement has been enforced because foreign nationals serving on BUMN boards of directors are considered state officials. Moreover, the KPK is willing to assist foreign nationals with the submission process if they encounter difficulties completing their LHKPN. Those required to report can find more detailed information on completing the LHKPN via the portal elhkpn.kpk.go.id.
“As state officials, they are still required to report their LHKPN,” KPK spokesperson Budi Prasetyo told the press on Tuesday, the 3rd of February.
The obligation to submit the LHKPN is considered a crucial instrument in promoting transparency and accountability in state administration.
“This obligation applies to heads of state institutions, ministers of the Red and White Cabinet, heads of government and non-structural institutions, regional heads, heads of the Regional People’s Representative Council [Dewan Perwakilan Rakyat Daerah or DPRD], and directors of BUMN as well as regional-owned enterprises [Badan Usaha Milik Daerah or BUMD] throughout Indonesia,” continued Prasetyo.
Previously, in January, during his keynote speech at the World Economic Forum in Davos, Switzerland, President Prabowo Subianto announced that foreign nationals would be permitted to serve as directors of BUMN. He also stated that the Daya Anagata Nusantara Investment Management Agency (BPI Danantara) currently manages 1,044 BUMN, although the number will be reduced to around 300 for efficiency reasons. As Subianto wishes for Danantara to be managed according to international standards, the institution is permitted to recruit expatriates or foreign nationals to lead the agency or BUMN under its management.
To date, one of the BUMN with foreign national directors is PT Garuda Indonesia (Persero) Tbk. The two foreign directors are Director of Finance and Risk Management, Balagopal Kunduvara, and Director of Transformation, Neil Raymond Mills.