Latest news with #WillyKurniawan
The Star
04-08-2025
- Business
- The Star
Danantara unveils sweeping reforms for SOE pay
FILE PHOTO: A sign for Indonesia's sovereign wealth fund Danantara is seen in front of its headquarters in Jakarta, Indonesia, February 28, 2025. REUTERS/Willy Kurniawan/File Photo JAKARTA: State asset fund Danantara has announced a major overhaul of bonus and compensation rules for state-owned enterprises (SOE) directors and commissioners, aligning rewards with global standards of corporate governance. Under the new rules, directors' incentives will be strictly tied to measurable operational outcomes and financial performance, based on audited statements that reflect actual business conditions. Meanwhile, commissioners will no longer be eligible for performance-based bonuses, in line with international best practices that advocate for fixed compensation to ensure their independent oversight role. 'This restructuring represents a comprehensive overhaul of the government's incentive system,' Danantara chief executive officer Rosan Roeslani said in a statement issued last Friday. 'We want to ensure that every reward, especially for the board of commissioners, is aligned with its contribution and actual impact on the governance of the SOE concerned,' Rosan said. The policy draws from global benchmarks, including the Organisation for Economic Co-operation and Development Guidelines on Corporate Governance of State-Owned Enterprises, which advocate for fixed remuneration for supervisory roles to ensure impartiality and accountability. The reform is seen as a bold move to reset the governance within Indonesia's SOEs and signals a broader shift in public sector compensation strategies. The policy, detailed in an official letter, will take effect this year and apply to all SOEs within Danantara's portfolio. The move is part of a broader structural reform agenda aimed at creating a more transparent, accountable and efficient SOE ecosystem that prioritises public interest over personal gain. Danantara said the reform does not amount to a reduction in remuneration, but 'a realignment'. Commissioners will continue to receive a fixed monthly income reflective of their roles and responsibilities. However, the elimination of variable, profit-based compensation is intended to reinforce their independence and supervisory integrity. 'This is not about cutting pay. It's about making it appropriate,' Rosan said. 'Commissioners will still be compensated fairly, but without the distortions of performance-based incentives that can compromise oversight.' The reform comes amid heightened scrutiny over SOE governance practices following a wave of controversial political appointments. With 30 of 56 deputy ministers now holding commissioner posts in major SOEs, critics argue that governance is increasingly driven by political patronage. These include recent appointments of Second Deputy Higher Education, Science and Technology Minister Stella Christie to Pertamina Hulu Energi and former athlete Taufik Hidayat to PLN Energi Primer Indonesia. Political observers and anti-corruption experts have flagged these dual roles as conflicts of interest. 'It shows weak commitment to anti corruption efforts,' Indonesia Corruption Watch's Yassar Aulia said on July 13. — The Jakarta Post/ANN
The Star
22-05-2025
- Business
- The Star
Indonesia set for more rate cuts on growth view: Analysts
FILE PHOTO: Indonesia's Central Bank Governor Perry Warjiyo speaks during a press conference at Bank Indonesia's headquarters in Jakarta, Indonesia, January 15, 2025. REUTERS/Willy Kurniawan/File Photo JAKARTA: An improving market sentiment will pave the way for Indonesia's central bank to better balance its pro-growth stance with ensuring stability in the financial markets, according to analysts. Bank Indonesia will not hesitate to stabilise the rupiah through intervention amid economic uncertainty, Governor Perry Warjiyo (pic) said after reducing the BI-Rate by 25 basis points on Wednesday. The central bank also lowered its 2025 gross domestic product growth forecast to a range of 4.6% to 5.4%. There's room for the central bank to further ease policy as the rupiah regains footing amid a weaker dollar, cooling trade tensions and waning fiscal concerns. Foreign flows are also returning to local stocks and bonds. "BI could cut the policy rate by another 75 basis points this year as the rupiah stabilises,' though a potential delay in Federal Reserve fund rate cut may slow Indonesia's pace of easing, Goldman Sachs Group Inc analysts Rina Jio and Danny Suwanapruti wrote in a note. - Bloomberg
Reuters
04-03-2025
- Climate
- Reuters
Floods in Indonesia's capital displace thousands
Item 1 of 10 Rescuers evacuate people using a rubber boat from a flooded residential area following heavy rains in Jakarta, Indonesia, March 4, 2025. REUTERS/Willy Kurniawan JAKARTA, March 4 (Reuters) - Thousands of people were evacuated in Indonesia's capital Jakarta on Tuesday after floods swamped the region, officials said, with heavy rain expected to continue over the next few days. Torrential rain since Monday has triggered floods of up to 3-metres (yards) in and around Jakarta, the country's disaster agency said in a statement, blocking some roads and submerging over 1,000 houses and many cars. Jakarta Governor Pramono Anung raised the alert level to the second highest of the critical stages, calling on the local government to activate water pumps to extract water from flooded areas and conduct weather modification operations - which typically includes shooting salt flares into clouds to trigger rain before they reach land. Local media reported floodwaters also swamped a hospital in the eastern town of Bekasi, with water entering some wards, forcing the evacuation of patients to other buildings, while other parts of the hospital were hit by power outages. Rescuers on rubber boats sailed through thigh-high water to evacuate residents that had been trapped in floods since 4 a.m. (2100 GMT) at a housing complex in Bekasi, Reuters reporters said. Sri Suyatni, 50, said she did not have time to collect her belongings before evacuating and her entire house was submerged in flood water. "I hope the floods will soon recede," she said. The Greater Jakarta metropolitan area, home to more than 30 million people, is regularly hit by floods. But several local media reported the current situation, particularly in Bekasi, was the worst since 2020. Floods killed 60 in Jakarta in 2020, following the heaviest one-day rainfall since records began in 1866. Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here.
