Jakarta. Sovereign wealth fund Danantara said Thursday that the agency would conduct reviews to see if other state-run companies besides the flag carrier Garuda Indonesia also need foreigners to assume the leadership roles.

A day earlier, Garuda announced that two non-Indonesians had entered its board of directors, namely aviation expert Neil Raymond Mills and Singapore Airlines’ alumni Balagopal Kunduvara. President Prabowo Subianto recently told a Forbes conference that Indonesia had “changed the regulations” to let foreigners assume high-ranking positions at state-owned enterprises (SOEs). 

Danantara has brought all SOEs under its management. The fund is aware that the recent Garuda shake-up had sparked questions about whether similar reorganizations involving expatriates would hit other companies.

“I’m sure you are wondering whether we will do the same thing [installing foreigners] in other SOEs. … We will make analyses. We won’t immediately rush into deciding that ‘oh, we need expatriates’,” Danantara’s chief executive officer Rosan Roeslani said in Jakarta.

“We will see if the expatriates in question can really bring a transfer of technology and knowledge. Also, whether they can bring their vast experience so our SOEs can meet international business standards. We want to improve the companies’ governance,” Rosan said.

Rosan did not say whether Indonesia had placed a cap on how many foreigners could join an SOE’s top brass.

“The upper management plays a very important role. We have made regulatory changes, so we can give top positions to expatriates, as long as they have a strong background,” Rosan told the press.

Wednesday’s shake-up saw Kunduvara, who had spent more than 25 years in Singapore Airlines, officially becoming Garuda’s finance director. Mills had been hopping from one airline to another over the past decades. He had assumed C-level roles in Scandinavian Airlines, Nigeria’s Green Africa, Air Italy, and even Air Berlin. Mills is now Garuda’s director of transformation. Rosan admitted to reporters that Garuda needed "massive transformation" as the company struggled with losses.

Danantara’s chief investment officer Pandu Sjahrir said Wednesday that the higher-up appointments would still prioritize Indonesian nationals and diasporas. In other words, expatriates would become a last option if they can’t find an Indonesian national who meets the criteria.

“Our priorities remain the same: we will look for the best talents at home, as well as the Indonesian diaspora. If there is none, we will try to look for foreign nationals,” Pandu told the press.

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