January 31, 2026 | 08:37 pm
TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto would replace members of the board of directors of the state-owned banks association (Himbara) who are deemed detrimental to the country.
The statement was conveyed by Defense Minister Sjafrie Sjamsoeddin, stating that the measure is necessary to allow for state-owned banks to work more effectively to bolster Indonesia's economic sovereignty.
"Himbara banks give more credit to big names than small entrepreneurs. Therefore, the President has decided to replace all of Himbara banks' board of directors," said Sjafrie while addressing members of the Indonesian Journalists Association (PWI) who were attending a retreat in Cibodas, Rumpiang, Bogor Regency, West Java, on Saturday.
So far, many state-owned banks and other state-owned enterprises (SOEs) are deemed insufficiently profitable, which could be attributed to the board of directors not working to the fullest and even tending to prioritize personal gains.
Therefore, Sjafrie continued, the government will run a rigorous selection process for the leadership of the state-owned banks and other SOEs, considering their intellectual abilities and experience.
“We will replace them with those possessing intellectual abilities, practical skills, and love for the nation,” said Sjafrie.
“We will no longer appoint those who have been long entrenched in SOEs,” he said, reiterating the government's goal to seek a new generation of SOE directors.
“The government is looking for militant, capable, and credible youth to whom we can entrust the task and responsibility of steering our economic struggle,” he explained, without giving away details about the selection scheme.
Read: The Huge Risks of Ordering State Banks Around
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