October 17, 2025 | 07:15 pm
TEMPO.CO, Jakarta - Indonesian Minister of State Secretariat, Prasetyo Hadi, has hinted at the possibility of more State-Owned Enterprises (SOEs) being led by foreigners. Prasetyo stated that several strategic sectors may require the expertise of foreigners.
"If we can imagine, in the aviation industry, and certainly we also need many in the mineral and oil industry," said Prasetyo at the Coordinating Ministry for People Empowerment office in Central Jakarta, on Friday, October 17, 2025.
Prasetyo mentioned that foreigners are allowed to hold certain positions in SOE when their expertise is needed. "If we feel that for the time being we need the skills and competencies of someone who happens to be a foreign national, why not?" Prasetyo said.
The Gerindra Party politician did not disclose which SOE would be led by foreigners. But when asked about PT Pertamina, Prasetyo did not deny it. "Not ruling it out," he said.
Previously, President Prabowo Subianto said that foreigners can indeed lead SOEs. "I have changed the regulations. Now expatriates, non-Indonesians, can lead our SOE," said Prabowo at the Forbes Global CEO Conference in South Jakarta, on Wednesday, October 15, 2025.
Prabowo's statement was in response to the controversy surrounding the appointment of two foreigners who filled positions at PT Garuda Indonesia tbk. The extraordinary general meeting of the state-owned company, on Wednesday, October 15, decided to appoint Balagopal Kunduvara as Director of Finance and Risk Management, and Neil Raymond Nills as Director of Transformation.
The latest revision of the State-Owned Enterprises Law does indeed open up opportunities for foreigners to hold certain positions in SOEs. Article 15A paragraph (1) letter a of the State-Owned Enterprises Law stipulates that the requirement to become a director of a state-owned company is must be an Indonesian citizen. However, in the subsequent regulation, namely Article 15A paragraph (3), it regulates that the requirements referred to in Article 15A paragraph (1) letter a may be determined differently by the SOE Regulatory Body.
Chief Executive Officer of Danantara Indonesia, Rosan Roeslani, said that the government appointed expatriates who could provide sharp analysis to certain positions in SOEs to transfer knowledge and technology and advance state-owned companies. "We also analyze the expatriates that we bring in to see if they can truly bring BUMN up to international standards," said Rosan when met at JS Luwansa, Jakarta, on Thursday, October 16, 2025.
The Minister of Investment and Downstream/Head of the Investment Coordinating Board stated that the presence of expatriates in SOEs can provide good standards for the company.
Alif Ilham Fajriadi contributed to the writing of this article
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