Can foreigners lead Indonesia’s state firms and make them world-beaters?

While a new law in Indonesia now permits foreigners to hold top positions in state-owned enterprises (SOEs), there is a debate surrounding the implications for governance and potential conflicts of interest. At the recent Forbes Global CEO Conference in Jakarta, Minister of State-Owned Enterprises Erick Thohir discussed the revision of regulations to enable non-Indonesians to lead about 1,000 state firms. This change aims to attract global talent and enhance the competitiveness of Indonesia’s SOEs on the global stage. However, concerns persist regarding the ability of foreign leaders to align with local interests and navigate complex cultural dynamics.