Transformation of SOE Ministry Annual Report 2020 slide image

Transformation of SOE Ministry Annual Report 2020

CHAPTER 1 234 5 6 7 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. 50 64 RESILIENCE AMIDST UNCERTAINTY RESILIENCE AMIDST UNCERTAINTY 51
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