Jakarta. Sovereign wealth fund Danantara has defended the appointment of foreign nationals as directors in state-owned enterprises (SOEs), saying their inclusion is based on professional merit rather than political considerations.

Rohan Hafas, Managing Director for Stakeholder Management and Communication at Danantara, said on Friday that expatriates serving on SOE boards are selected for their proven expertise in their respective fields.

“Basically, they are professionals,” Rohan told reporters at Wisma Danantara in Jakarta. “As long as they are not state officials or policymakers, their presence is not an issue because they are not involved in political or national decision-making.”

He added that foreign professionals could serve as role models through their successful career experience and credibility in global business practices.

“They don’t run the country or make political decisions for it,” Rohan said. “So essentially, their presence does not interfere with national interests.”

Earlier this month, Danantara CEO Rosan Roeslani also addressed concerns over the appointment of foreigners to SOE boards, saying such practices are permitted under Indonesian law.

The issue surfaced following an extraordinary general shareholders’ meeting at national carrier Garuda Indonesia (IDX: GIAA), where two foreign nationals, Balagopal Kunduvara and Neil Raymond Mills, were appointed as directors.

Meanwhile, the Corruption Eradication Commission (KPK) clarified that foreign nationals leading SOEs are still subject to Indonesian anti-corruption laws. They are required to submit asset declarations and will remain under the KPK’s jurisdiction should they be implicated in graft cases.

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