| dc.description.abstract | Recently the administration and management of State-Owned Enterprise got much public
attention because the manageiment applied is reparded of being unprofessional, inefficient, not
transparent and not accountable thatthe government spend more money to Keep it exist
Public evaluation of the performance of the Board of Management of State-Owned
Enterprise brings up questions of what causes the performance of the Board of Management of
State-Owned Enterprise in managing the company inefficient and not optimal; what the position,
role and responsibility of the Board of Management of State-Owned Enterprise in managing, the
company ar; and whether or not the intemal regulations made by the Board of Management of
State-Owned Enterprise is regarded valid and exising legislation or as a part of the
Constitutional Lave
In managing the company, the Board of Management of State-Owned Enterprise is bound
to the legislation regulate in Law No. 19/2003 in connection with Law No11995, the Statutes of
the Limited Compary and the Decision made in the Stakeholders” General Meeting (RUPS)
Which are in accordance with the existing legislations. In one side, the existence of Law
No.1772003 raises the unclear and problematical regulation in managing. of State-Owned
Enterprise because the definition of state finance stated in Law No, 17/2003 ines the state
property which is separated from the Budget of State Revenue and Expenditure included in State-
Owned Enterprise. Law upholders always look at public intrest in handling any case occured in
a Stat-Owned Enterprise.
Even though the Supreme Court issued its insteuction on August 16,2006 then followed
withthe Letter of State Minister of State-Owned Enterprise conceming the separation ofthe
asses of th State from those belongs tothe StateOwned Enterprise, the law upholder sill do
not change their public inferest-based perception. ‘This situation results in. confusion” and
‘uncertainty in the administration and management of State-Owned Enterprise tht the Board of
Management cannot focus and optimally manage the business of State-Owned Enterprise. Feling
afraid of being chased by th law upholders becomes a constraint in developing the State-Owned
Enterprise business activites. The exstonce and management of State-Owned Enterprise a8 a
busines entity isnot maximal in the attempt to gain big profit as expected and demanded bythe
government asa sharcholder that finally the contribution of State-Owned Enterprise expected by
the community asthe motor and. motivator forthe national economy is less fet and enjoyed by
the community themselves. | en_US |
