31 Indonesian deputy ministers retain SOE board seats despite court ban

At least 31 Indonesian deputy ministers continue to serve as commissioners on the boards of state-owned enterprises (SOEs), defying a Constitutional Court ruling that prohibits such dual roles. Transparency International Indonesia (TII) highlighted this ongoing issue, noting that the court's decision aimed to prevent potential conflicts of interest.

The Constitutional Court's ruling, issued in August 2025 under Decision No. 128/PUU-XXIII/2025, explicitly stated that deputy ministers should not simultaneously hold positions on SOE boards. The court granted a two-year transition period for compliance, a provision that was subsequently integrated into Indonesia's 2025 SOE Law. However, TII researcher Ferdian Yazid expressed concern over the lack of progress, stating, "SOEs are still maintaining boards that include deputy ministers."

Prior to the ruling, 34 deputy ministers occupied commissioner positions in state-owned companies. Nearly a year into the transition period, TII's data indicates that only three have stepped down. TII observed that some of these departures were linked to corruption cases, suggesting that compliance is being driven by factors other than adherence to the court's directive.

TII's data lists the 31 deputy ministers still serving on SOE boards, occupying roles such as President Commissioner or Commissioner in various prominent companies, including Pupuk Indonesia, Telkom Indonesia, PLN, Pertamina, and Bank Rakyat Indonesia. TII pointed out that several SOEs had opportunities to comply with the court's decision during recent annual general meetings of shareholders but opted to retain deputy ministers on their boards, indicating a potential resistance to the reform.

The continued presence of deputy ministers on SOE boards raises concerns about governance, transparency, and the potential for undue influence or conflicts of interest within these crucial state-owned entities. The slow pace of compliance suggests a significant challenge in implementing the court's decision and enforcing the new SOE Law effectively.

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SOEs are still maintaining boards that include deputy ministers.