Calculating Ahok’s new power
Former Jakarta governor Basuki “Ahok” Tjahaja Purnama appears to have a volatile career trajectory. After his much-publicized political downfall in 2017 due to a religious blasphemy case that resulted in his imprisonment, Ahok may, in the near future, chair a strategic state-owned enterprise (SOE). Reports contend that Ahok will either be posted to oil and gas giant Pertamina or electricity firm PLN.
The hubbub that followed the reports suggested that Ahok’s new corporate career could bring major repercussions. This raised questions about the political implications of his appointment to the key post.
It is widely speculated that Ahok owes his comeback, at least in part, to his proximity to several key political figures, including President Joko “Jokowi” Widodo. The dynamic duo of Jokowi and Ahok changed the national political landscape when they won the Jakarta gubernatorial election in 2012. It was Jokowi himself who reportedly recommended Ahok’s appointment to a top post in an SOE,1 an unsurprising move as it could benefit Jokowi strategically.
Ahok’s appointment might be part of Jokowi’s power-sharing strategy that seeks to expand and consolidate his grip. If this is true, Ahok would join other members of Jokowi’s inner circle who hold strategic posts in the government. With one of his confidantes overseeing a giant state firm, Jokowi could ensure financial resources for his signature development programs.2
Ahok is reportedly also close to Indonesian Democratic Party of Struggle (PDI-P) matriarch Megawati Soekarnoputri.3 Megawati, who did not get along with former SOE minister Rini Soemarno,4 would benefit from Ahok’s appointment as he could help maintain the PDI-P’s interests in SOEs. In Pertamina, for instance, Ahok, who is a PDI-P member, would be expected to eradicate the entrenched power of the “oil and gas mafia”, which is currently linked to the NasDem Party, whose chairman Surya Paloh is embroiled in a power struggle with Megawati.5
Alone, Ahok lacks adequate capital to shoulder the onerous responsibilities of leading an SOE. Ahok will face stiff resistance not only from the “old players” whose influence has long been established in the SOE, but also from his old political adversaries. With Jokowi and Megawati on his side, however, anything is possible for Ahok.
Since his meeting with Ahok, which triggered rumors about Ahok’s appointment, SOE Minister Erick Thohir has refused to provide details about the matter, saying that the final decision would be made in December at the latest. Regardless, it has been widely speculated that Ahok will be posted as either president director or chief commissioner of an unnamed SOE.
Institutionally, both positions hold strategic authority and responsibilities. As president director, Ahok’s main responsibility would be to lead business operations, including formulating and implementing corporate policies and allocating the budget. If Ahok is named president director of either Pertamina or PLN, his main challenge will be to abolish the powerful cronyism of the “business mafia” in the SOEs. This is a tall order, as illustrated by corruption cases involving past PLN CEOs, most recently Sofyan Basir, who was eventually acquitted.
Equally challenging is Ahok’s responsibility to ensure the profitability of the SOE. With regard to Pertamina, for instance, Ahok must deal with the government’s single fuel price program, which has significantly eroded the company’s revenues.6
The complexity of a president director’s responsibilities, which requires deep technical knowledge, has led many to suggest that Ahok may be given a chief commissioner job instead. Indeed, technically speaking, this position is less difficult than the president director post since a chief commissioner is responsible for overseeing and advising the board of directors. This, however, does not make a chief commissioner less powerful than a president director as the former has the authority to suspend the latter.
At the end of the day, however, the support that Ahok gets from key figures like Jokowi and Megawati will have a greater effect on his influence within an SOE than the nature of his actual post. As illustrated by the rise and fall of previous Pertamina president directors, technical expertise alone appears inadequate to ensure a president director’s success. Rather, political considerations have been integral to both the appointment and dismissal of Pertamina bosses. Every president has his or her own choice for Pertamina CEO. The first and the longest-serving president director of Pertamina, Ibnu Sutowo, was associated with former president Soeharto.7 In this case, Ahok’s strong affiliation with a number of major political figures has given him a very advantageous head start.
“The President wants Ahok,” said a source when asked about who would lead state oil and gas company Pertamina. According to the source, Jokowi initially wanted Ahok to become PLN president director, but Ahok refused as he deemed the electricity company as “too complicated”. Ahok was referring to the sheer number of politicians who “entrusted” their own interests in the firm’s mega projects, such as the construction of coal-fired power plants (PLTU) and hydropower plants (PLTA) which require exorbitant cost. The politicians reportedly receive support from foreign business players. “For steam-fired power plant construction, [the support] usually comes from business players from China. There are also some from Japan and Europe for [projects related to] renewable energy,” added the source.
The offer for Ahok first came in October, but it was only followed up after former PLN president director Sofyan Basir was acquitted from graft charges in early November. “[The government] waited for a great momentum to introduce [Ahok’s possible appointment] to the public,” said the source. Hence, Ahok’s visit to the SOEs Ministry was orchestrated so that it was covered by the media.
“State steelmaker Krakatau Steel and national flag carrier Garuda were also discussed [during Ahok’s meeting with SOEs Minister Erick Thohir], but it was only a chitchat. In short, Pertamina job is already certain after [Ahok’s] refusal to lead PLN,” said the source.
However, following resistance from Pertamina, Ahok has been asked to think twice. Another source, whose recommendation was sought, advised Ahok to wait for the current situation to calm.
“The President has also been informed to postpone [Ahok’s appointment in Pertamina],” said the source. Erick had not expected resistance from Pertamina’s labor union. It is feared, according to the source, certain parties might fan opposition against Ahok’s appointment in Pertamina and reopen Ahok’s blasphemy case. Before taking a decision Jokowi, still needs advice, particularly from PDI-P chairwoman Megawati Soekarnoputri.
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