Transformation of SOE Ministry Annual Report 2020
CHAPTER 1
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SOE ROADMAP & TRANSFORMATION
MINISTRY OF STATE-OWNED ENTERPRISES
OPPORTUNITIES FOR TALENTS
ANNUAL REPORT 2020
PRIORITY 5:
TALENT DEVELOPMENT
The Ministry of SOE has prepared to seize Indonesia's
demographic dividend in the next decade of 2030-
2040. Given that Indonesia's productive age population
(individuals ages 15-64 years old) is estimated to
reach 70%, several policies are in place to increase
SOEs' competitiveness as global players and home to
professional talents.
SOEs' policies that appeal to the younger generation,
millennials, and women will eventually turn SOEs into
innovative, creative, agile, and dynamic companies.
To date, the policies that have been implemented are:
STANDARDIZATION OF SOE BOD
COMPETENCY
The Ministry of SOE has identified three dimensions to
assessing SOEs' talent, namely competency, professional
qualification, and character, and in 2015 revised and
launched 12 competency indicators for prospective SOE
Directors. Assessment results of the three dimensions can
inform the strategies to hone talents in SOES as the future
leaders of change and progress.
BOARD OF COMMISSIONERS & BOARD OF
DIRECTORS' SELECTION GOVERNANCE
To improve the selection process governance of members
of Board of Commissioners and Directors, the Ministry of
SOE appoints seven independent institutions as assessment
centers that evaluate prospective members of an SOES'
Board of Directors from time to time. The institutions are
PT Telekomunikasi Indonesia (Persero) Tbk, Management
Institute, Faculty of Economics and Business of Universitas
Indonesia (UI), Indonesian Banking Development Institute,
PT Aneka Search Indonesia, PT Binaman Utama-PPM
Management, PT Daya Dimensi Indonesia, PT Eshael
Indonesia, and PT Hay Group-Korn Ferry.
TALENT SUCCESSION MANAGEMENT
To create continuous leadership regeneration, the
Ministry of SOE established a SOE Talent and Succession
Management which identifies the top three candidates
at the BoD and BoD-1 levels from each SOE as well
as candidates from professionals with the potential to
become reliable SOE leaders.
WOMEN AND YOUTH REPRESENTATION
In line with the target to have higher representation of
women and young leaders in SOES, various efforts have
been made by SOEs together with the Indonesian Human
Capital Forum (FHCI). Until the end of 2020, there were 93
women representatives out of 960 Directors and Board
of Commissioners/Supervisory Board of the Parent SOES.
Meanwhile, of the 1,429 talents proposed by SOEs to enter
Talent & Succession Management, 918 BOD-1 talents have
been identified as Eligible Talents, of which 124 talents are
women.
Millennials (under 42 years of age) are also given
the opportunity occupy the seats of Directors
or Commissioners of SOES, as exemplified by PT
Telekomunikasi Indonesia (Persero) Tbk, PT Pos Indonesia,
Pertamedika, and Bio Farma. The Ministry also continues
to increase the percentage of women in senior leadership
up to 15%.
Opportunities for Talents with Disabilities
The Ministry of SOE together with the Indonesian Human
Capital Forum (FHCI) continue to take steps to meet the
target of providing employment opportunities of at least
2% for people with disabilities.
From 2019 to the end of 2020, 310 people with disabilities
have been recruited and assigned in 42 SOES.
Opportunities for Papuan Talents
SOEs' recruitment program for Papuans was received
positively as evident from twenty thousand applicants
who participated. From 2019 until the end of 2020, SOES
have recruited 776 of Papua's best talents - realizing 77%
of its target to employ 1,000 Papuan talents consisting of
522 people recruited in 2019 and 254 people recruited in
2020. They are placed in 55 SOEs throughout Indonesia.
This program will be continued in the coming years.
COMMITMENT TO GOOD CORPORATE GOVERNANCE
The overall transformation of SOEs is integral to the
transformation of the business processes and talents
of SOES. This is done to realize good governance, risk
management culture, the anti-corruption principles,
and the monitoring of the anti-bribery management
system. The progress of achieving these targets as of 31
December 2020 is as follows:
•
•
Focus on Licensing and Trading Administration - sub-
action 5 implementation of the MAS system: 94.1%.
Focus on Bureaucracy and Law Enforcement
Reform - sub-action 19 acceleration of Merit system
implementation: 87.5%.
Focus on State Finance - Sub-action 16 optimizations
of KSWP: 71.4%.
•
Implementation of Anti-Bribery Management System
Quality Standards and SNI ISO 37001:2016: 96.3% (104
SOEs, including subsidiaries).
Establishment of a Gratification Control Unit under
the guidance of the Deputy for Prevention of the
Corruption Eradication Commission. Various policies
and initiatives were born to avoid potential conflicts
of interest. The Inspectorate as the manager of the
alleged violation reporting system is assigned the
responsibility of managing the WBS.
To build a risk management culture in SOE, the
Ministry of SOE with the aspirations of shareholders
encourages the measurement of the Risk Maturity
Index in 2021 (according to the Strategic Plan of the
Ministry of SOE 2020-2024) and the risk management
profile in the 2021 Company Work Plan and Budget.
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RESILIENCE AMIDST UNCERTAINTY
RESILIENCE AMIDST UNCERTAINTY
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