WHISTLEBLOWING PROCEDURES IN THE ENVIRONMENT OF STATE- OWNED ENTERPRISE

A Whistle blowing system according to Chapter IV(a) Regulation of the Minister of State-Owned Enterprises Number: Per-01/ MBU/01/2015 concerning Guidelines for Handling Conflicts of Interest in the Ministry of State-Owned Enterprise (RMSOE 01/2015) is a report mechanism made by Employees of the Ministry of State Owned Enterprise or other parties (State-Owned Enterprise Employee, work partners and the community) who do not have direct involvement, who are aware of the existence of a potential of a Conflict of Interest in the Ministry of State-Owned Enterprise and where the handling of the report is kept confidential.

Stages of Reporting on Alleged Conflict of Interest requiring Whistle Blowing Based on the provisions of Chapter III (A)1 of the Regulation of the Minister of State-Owned Enterprise Number: Per-13/MBU/10/2015 concerning Guidelines for the Management of the Reporting System for Alleged Violation within the Ministry of State-Owned Enterprise (RMSOE 13/2015) explains that the Stages of Management of the Alleged Violation Reporting

System must at least include (a) criteria and data for reporting alleged violation, (b) time of the report violation, (c) anonymous reporting and (d) a report submission mechanism.

The Criteria and Data for Reports of Alleged Violations as referred to in point (a) above are reported violations, which are at least manifested in the form of corruption and conflicts of interest (such as receiving gratuities, abusing positions, outside employment and so on see Chapter II letter A SOE Ministerial Regulation 01/2015). Therefore, report of alleged violations must meet the following elements:

a. There is a suspected violation.
b. Place where the alleged violation occurs.
c. When did the alleged violation occur.
d. The identity of the alleged violator.
e. Method used to commit the alleged violation.

Moreover, the report of alleged violation must be accompanied by Sufficient Preliminary Evidence, at least in the form of relevant data or documents and/or relevant images or recordings. Further, the mechanism for submitting a report is a set out. Reports can be made through the existing infrastructure such as telephone, SMS Central, a Website, an e-mail, facsimile, or Official Letter from the Ministry of State-Owned Enterprise addressed to the Inspector. In addition to the communication channels above, reporting of alleged violations can also be done by reporting through formal channels (through the direct superiors or persons with related functions).2

Upon creating a report of alleged violation, the next step is recording, reviewing, and in particular to identify the nature of the violation and to formulate a mechanism for handling these alleged violations. The mechanism must also include forwarding them to the relevant Board of Directors and Board of Commissioners/Supervisory Boards, and subsequent archiving.3

Once these initial steps have been completed, further handling of reports of alleged violations are described in Chapter III (B) of Ministerial Regulation 13/2015, namely to carry out investigative audits and audits with specific objectives. An investigative audit is intended if there is an alleged violation that indicates a criminal act of corruption, while an audit with a specific purpose is suitable if the alleged violation indicates a deviation that is detrimental to state finances, personnel irregularities, procurement of goods and services, or other violations that are not criminal acts of corruption.

The conclusion is, the enactment of Ministerial Regulation 01/2015 and Ministerial Regulation 13/2015, especially within the Ministry of State- Owned Enterprise, has provided a guarantee of confidentiality to every Whistle blower who makes reports regarding suspected violations in the Ministry of State-Owned Enterprise. In addition, the 2 (two) regulations clearly explain the steps that can be carried out for making or filing a report regarding the allegations. It clearly protects the identity of the whistle blower at the Ministry of State-Owned Enterprise. Setting up this clear mechanism will go a long way to promote transparency by our officials in SOEs. MAD/FMP

The information is not intended to provide a legal opinion or views of the Anggraeni and Partners law offices against a particular legal issue. Neither party may assume that he or she should act or cease or choose to act on a particular matter based on this information without seeking advice from professionals in accordance with the certain facts and certain circumstances it faces.

See point 1 and point 2 letter (d) regarding the Mechanism for Submission of Reports for Chapter III of Minister of SOEs Regulation 13/2015.
See point 2 to point 5 letter (A) Chapter III of SOE Ministerial Decree 13/2015.

WHISTLEBLOWING PROCEDURES IN THE ENVIRONMENT OF STATE- OWNED ENTERPRISE

System must at least include (a) criteria and data for reporting alleged violation, (b) time of the report violation, (c) anonymous reporting and (d) a report submission mechanism.

The information is not intended to provide a legal opinion or views of the Anggraeni and Partners law offices against a particular legal issue. Neither party may assume that he or she should act or cease or choose to act on a particular matter based on this information without seeking advice from professionals in accordance with the certain facts and certain circumstances it faces.

See point 1 and point 2 letter (d) regarding the Mechanism for Submission of Reports for Chapter III of Minister of SOEs Regulation 13/2015.
See point 2 to point 5 letter (A) Chapter III of SOE Ministerial Decree 13/2015.