Emasculating Oversight

THE proposal of the board of directors of state-owned Telekomunikasi Indoneia (Telkom) must be sharply and intensively reviewed. They are recommending that certain functions involving the budget and share transactions should not require the approval of the commissioners. The government, as the majority shareholder of Telkom, must reject these proposals.

The intention to initiate these changes was revealed during a joint meeting between the board of directors and the commissioners or governing board last March 23. The directors want certain restrictions on executive action be eased, not requiring the board of commissioners' approval, to a minimum of 20 percent of the value of corporate shares, or Rp17 trillion.

April 21, 2015