President Prabowo Subianto Orders State-Owned Banks to Streamline Board of Commissioners

President Prabowo Subianto holds a limited meeting with several ministers of the Red and White Cabinet at the Merdeka Palace, Jakarta, Wednesday (03/26). (Photo by: BPMI Setpres)

President Prabowo Subianto has instructed state-owned banks to streamline the structure of their Board of Commissioners to make it leaner and to ensure that the roles filled by professionals. This issue was discussed in a limited meeting chaired by President Prabowo and attended by several ministers of the Red and White Cabinet at the Merdeka Palace, Jakarta, Wednesday (03/26).

Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the this measure was part of an effort to strengthen SOE management and increase positive market response. “It is indeed the President’s directive that the number of commissioners is made more concise and filled by professionals,” Airlangga said in a press statement to the media after the meeting.

According to Airlangga, this new structure will still adjust to the needs of each bank. In addition, the composition of commissioners will also still include elements from relevant technical ministries.

“For example, there will be representatives from ministries, representatives from financial sector, and for Bank BRI there will be a representative from Ministry of MSMEs,” he explained.

Beside organizational structure streamlining, the meeting also discussed rupiah exchange rate. Airlangga emphasized that despite fluctuations of rupiah, Indonesia’s economic conditions remain fundamentally strong.

“Yes, the rupiah fluctuates as usual. But, of course, it is fundamentally strong,” he said.

Airlangga mentioned several supporting factors such as strong exports, solid foreign exchange reserves, and a positive trade balance. He added that the export proceeds of foreign exchange (DHE) policy that has been implemented has also had a positive impact on the resilience of the exchange rate.

“Our export is good, we have strong foreign exchange reserves, and a good trade balance. Thus, our fundamentals is good. Plus, we have implemented the export proceeds of foreign exchange. So, we are not cornered in the future,” he explained. (BPMI Setpres)