Farming community: A farmer works in a paddy field in Lambaro, Aceh province. Joao is steping down and says he is still eager to contribute and be involved in developing the farming community and Indonesia’s agricultural sector. — AFP
JAKARTA: State-owned agriculture company PT Agrinas Pangan Nusantara chief executive officer (CEO) Joao Angelo De Sousa Mota announces his resignation after only six months in office, citing his limited contribution to the company due to a lack of support from relevant stakeholders, including state asset fund Danantara.
Joao said stepping down was a way to “uphold his dignity and reputation”, as well as that of his team, given what he described as a failure to improve the prosperity of farmers in Indonesia.
“I’m taking this step for my dignity. I’m very eager to contribute and be involved in developing the farming community and our agriculture.
“However, we are not supported by the President’s aides, who have created an overly complicated bureaucracy,” he said in Jakarta on Monday, as quoted by Tempo.co.
The government could only control 10% of the national agriculture sector, he said, while the remaining 90% was dominated by businesses that could threaten the nation’s sovereignty.
“A country that can’t control matters concerning the livelihoods of many people, especially food, is very dangerous,” he noted.
Joao added that the government, particularly Danantara, which currently oversees state-owned enterprises’ (SOEs) operations and investments, had yet to make substantial interventions to maintain food supply and security.
He also pointed to the insufficient funding support for Agrinas during his tenure.
In response to the resignation, Danantara CEO Rosan Roeslani said that Agrinas would continue operating normally, including delivering services to its partners and stakeholders.
“The leadership transition process will be carried out in an orderly, measured and planned manner to ensure the smooth running of strategic programmes and the continuity of the company’s direction and objectives,” he said in a statement on Monday.
Rosan also said the agency respected Joao’s personal decision to step down, describing it as a professional move and noting that it would be processed in accordance with prevailing regulations and corporate governance standards.
He emphasised that Danantara had been strictly implementing good corporate governance and that every corporate action, including at Agrinas, would be undertaken after a comprehensive feasibility study and in compliance with existing procedures.
“The ongoing process ensures that every decision is made with due care, supports the sustainability of the company’s performance and maintains stakeholders’ trust,” Rosan said.
Agrinas was established earlier this year by combining three infrastructure SOEs, PT Virama Karya, PT Yodya Karya and PT Indra Karya, and transforming them into subsidiaries PT Agrinas Pangan Nusantara, PT Agrinas Palma Nusantara and PT Agrinas Jaladri Nusantara, to focus on the food, oil palm plantation and fishery sectors, respectively.
The government moved forward with creating Agrinas despite the existence of other state-owned holding companies in the same sectors, such as PT Rajawali Nusantara Indonesia, PT Perkebunan Nusantara III (PTPN) and PT Perikanan Indonesia.
It also has sugar and oil palm plantation companies, SugarCo and PalmCo, both subsidiaries of PTPN.
In March, Coordinating Food Minister Zulkifli Hasan said the new agriculture holding company was expected to receive funding from Danantara and therefore would not need to seek funding from the Finance Ministry. — The Jakarta Post/ANN
