Public Backlash Against Dual Positions

KOMPAS/DEONISIA ARLINTA

Professor of Economics, Faculty of Economics and Business, University of Indonesia, Ari Kuncoro was elected Chancellor of the University of Indonesia for the 2019-2024 period.

Since Tuesday (20/7/2021) the country’s people have upset due to a change in the statute of the University of Indonesia (UI). The change legalizes the university rector holding a second job, which was originally prohibited.

The UI statute, according to Government Regulation (PP) No. 68/2013, prohibits its rector from holding a concurrent position, including at state-owned enterprises (SOEs). On 2 July 2021, President Joko “Jokowi” Widodo issued PP No. 75/2021, which replaces the previous regulation so that an UI rector can hold a position at an SOE. The new regulation legalizes a second job for Prof. Dr. Ari Kuncoro, who has served as UI rector since December 2019, as the deputy president commissioner of Bank Rakyat Indonesia (BRI).

Also read:

> State-owned Enterprises as Global Players

> SOE Must be Part of the Solution

Earlier in 2017, Ari Kuncoro, a professor at the UI Economics and Business School, was appointed the chief commissioner of Bank Negara Indonesia (BNI). Later in February 2020, he was named a commissioner at BRI. The Republic of Indonesia Ombudsman (ORI) said the UI rector had violated the university’s statute. (Kompas.id, 1/7/2021).

It is feared that a leader of a state university holding a concurrent position in an SOE will affect academic freedom.

The government\'s move to change the UI statute, despite the warnings from the ORI and the public, has resulted in public uproar. The government was seen as looking for a shortcut to legally justify its policy, as has happened previously in similar cases. It is feared that a leader of a state university holding a concurrent position in an SOE will affect academic freedom.

Despite the controversy, we appreciate Ari Kuncoro’s decision on Wednesday (21/7) to resign from his position as deputy president commissioner of BRI. His resignation, which was also publicly announced at the Indonesia Stock Exchange (IDX) has been viewed as a wise move.

KOMPAS/ALIF ICHWAN

The atmosphere at the Ombudsman Office of the Republic of Indonesia, Jakarta, Tuesday (14/1/2020).

This is not the first time during the administration of President Jokowi that public officials have held concurrent positions and caused a public stir. Kompas’ records show that in 2015, a polemic arose regarding state officials who held a second position in a political party, which was not in line with the policies of the head of state. However, state officials who concurrently hold a position in political party still exist. The ORI also highlighted dual positions in SOEs in 2017, saying that such a practice could potentially lead to conflicts of interest and collusion.

According to the ORI’s records, 222 commissioners in 144 SOEs hold concurrent positions as state officials. That number accounts for 41 percent of 541 commissioners at all SOEs. The State Administration Institute (LAN) noted that of the 117 commissioners, 93 came from ministries, 12 from universities, eight from government agencies, five from the Indonesian Military (TNI), five from local governments, one from the National Police, and one from the prosecutor\'s office. (Kompas, 7/6/2017)

Concurrent positions still exist. As a matter of fact, Law No. 25/2009 on Public Services, Law No. 19/2003 on SOEs and Law No. 5/1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition prohibit concurrent positions. This is the time for the government to reorganize its apparatus so that there are no more dual positions. There is no need to make unnecessary fuss in the midst of the pandemic.

(This article was translated by Hendarsyah Tarmizi).