The newly issued Gubernatorial Decree No. 5/2018 on the procedures for appointing and dismissing directors of city-owned firms (BUMD) and joint-venture companies has given Jakarta Governor Anies Baswedan the power to directly appoint and dismiss directors of firms, who come from non-civil servant circles.

It replaces Gubernatorial Decree No. 180/2015 on the management of BUMD, which stipulated that potential directors of firms from non-civil servants backgrounds be recommended by independent experts and be required to pass fit and proper tests.

When asked about the new regulation, Anies made assurances on Friday that the directors would definitely go through a selection process first. “The most important thing in selecting the directors is to still follow the right selection process,” The governor, inaugurated in October last year, said as quoted by kompas.com.

“We will manage the BUMD professionally and apply good governance principles,” he added.

Separately, the Jakarta chapter of the Indonesian Solidarity Party (PSI) warned about the increasing tendency toward nepotism within the city administration, with the latest case being the appointment of the Indonesian Chamber of Commerce and Industry (KADIN) deputy chairman Sarman Simanjorang, who is a friend of Jakarta Deputy Governor Sandiaga Uno, as president commissioner of beer firm PT Delta Djakarta. Jakarta currently hold a 26.52 percent share in the company.

“This is an indication of the return of old practices in state politics in which friends are favored to hold offices in bureaucracies or city-owned enterprises,” said Jakarta PSI chairman Michael Victor Sianipar in a statement.

Victor urged Jakartans to “keep watching the maneuvers of [Jakarta's] leaders” even more, as Anies now had the right to reshuffle city officials. (vny)