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View all search resultsAnalysis: SOE governance reform faces a major test at Pos Indonesia
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Students visit the office of postal company PT Pos Indonesia during a study tour in Medan, North Sumatra on Aug. 13, 2018. (Antara/Septianda Perdana)
P
os Indonesia, the country's oldest state-owned enterprise (SOE), has come under renewed scrutiny following the resignation of its president director, Daud Joseph, after only three months in office. His departure was followed by allegations of governance irregularities, including suspected manipulation of the company's financial statements, prompting state asset fund Danantara to launch an audit. The episode underscores the persistent weaknesses in SOE governance that have contributed to the sector's underperformance for years.
Joseph was appointed president director on March 11 after previously serving as operations and safety director at Transjakarta. He filled a leadership vacancy that had been occupied by an acting president director for nearly a year. On June 22, however, Joseph resigned, saying Pos Indonesia required a leader with more specialized expertise to carry out the company's transformation.
His resignation came amid a sharp deterioration in the company's financial performance. Pos Indonesia's revenue fell by 20 percent in 2025, declining from Rp 5.02 trillion (US$286 million) to Rp 3.97 trillion. This was well below the company's five-year average revenue of Rp 5.06 trillion and marked its lowest annual revenue since 2013. Consequently, gross profit declined to Rp 1.5 trillion.
The decline was driven partly by lower logistics revenue from government social assistance distribution programs, including cash, rice and food aid, which fell to only Rp 300 billion. Beyond government-related services, Pos Indonesia also recorded weaker revenue from its logistics, courier and property businesses. By the first half of 2025, the parent company had posted an operating loss of Rp 37.92 billion. Operating cash flow also remained under pressure, with a negative balance of Rp 677.52 billion, extending a trend that began in 2024.
Beyond its weakening financial performance, governance failures have created additional risks for the company. In June 2025, Pos Indonesia disclosed estimated losses of Rp 37.73 billion resulting from employee fraud, up from Rp 34.49 billion estimated at the end of 2024. Around half of the estimated losses originated from the company's Makassar regional office. These figures remain subject to an ongoing audit as investigators examine misconduct that accumulated over several years.
Employee fraud has repeatedly surfaced within Pos Indonesia, ranging from the misappropriation of social assistance funds to broader operational misconduct. Last month, authorities arrested a fugitive linked to corruption in the distribution of funds under the Family Hope Program (PKH) in Cirebon, a case that caused state losses of Rp 264.55 million. Another corruption case in Bengkulu involved the misuse of stamp duty revenue and pension funds between 2022 and 2024, resulting in estimated state losses of around Rp 3 billion.
These recurring governance failures stand in stark contrast to Pos Indonesia's financial recovery after 2019. The company successfully reversed a comprehensive net loss of Rp 104.38 billion in 2019 into a comprehensive net profit of Rp 839 billion in 2024. However, the downturn appears to have resumed, with comprehensive net income reaching only Rp 144.74 billion in the first half of 2025.
