The government as controlling shareholder has replaced the board of directors of state bank BNI (BBNI) Wednesday (Sep 2). Royke Tumilaar, who was CEO of state bank Mandiri (BMRI), has been appointed new CEO of BNI to replace Herry Sidharta. Herry was appointed CEO of BNI in February 2020.
Adi Sulistyowati, meanwhile, is appointed vice president director to replace Anggoro Eko Cahyo, while Novita Widya Anggraini as new director of finance to replace Sigit Prastowo. Adi was previously director of services and network at BNI. Adi is replaced by Ronny Venir in this position.
David Pirzada is appointed director of risk management, replacing Osbal Saragi Rumahorbo, while Herry Panjaitan as new treasury and international director to replace Putrama Wahju Setyawan. Silvano Rumantir, meanwhile, is appointed director of corporate banking at BNI to replace Benny Yoslim.
Other directors are maintained in their position: YB Hariantono (director of IT and operation), Sis Apik Wijayanto (institutional relations), and Corina leyla Karnalies (consumer business).
So, five new directors, including Royke, are ‘alumni’ of Bank Mandiri. They are Royke, Silvano (former director of finance and strategy at Bank Mandiri), David Pirzada (SEVP Wholesale Risk), Muhammad Iqbal (SVP SME Banking), and Novita Widya (SVP Strategy and Performance Management). This has become a ‘political issue’ in the country, accusing officials at state-owned enterprises ministry of favouring Bank Mandiri bankers in key positions at state banks.
“The truth is that only two of them having long career with Bank Mandiri. Others spent most of their professional careers in other banks including foreign banks…But, some launched massive campaign against Bank Mandiri people as if the bank dominated key positions,” one source said.
David Pirzada, for example, spent 12 years as banker at Bank of Tokyo-Mitsubishi UFJ before joining Bank Mandiri in June 2018. Silvano Rumantir, meanwhile, was banker at Deutsche Bank (3 years), HSBC (7 years), and ANZ (5 years) before joining Bank Mandiri Group as CEO of Mandiri Sekuritas (investment bank arm of Bank Mandiri) in 2016.
The question, why such a major shakeup at BNI?
“BNI chairman Agus Martowardojo has expressed his concern about current status of the bank and the need to bring in people from outside the bank because the bank has reportedly been managed like their own kingdom. Agus needs chemistry with the board of directors to turn the bank around, which suffered significantly in the second quarter. BNI is just too big to fail with systemic implication to the whole economy,” another source commented.
Agus is former CEO of Bank Mandiri and former governor of Bank Indonesia (the central bank). There were plans to promote Herry Gunardi, vice president director of Bank Mandiri, as CEO of BNI, but Agus preferred Roy. Herry, accordingly, might be promoted CEO of Bank Mandiri.
Let’s see whether Royke can turn BNI around. One thing, BNI is now valued at Rp96.5 trillion, way below its equity (Rp112.4 trillion as at June 30). Fellow state bank BRI (BBRI), meanwhile, is valued Rp451.4 trillion, more than twice its equity (Rp187.8 trillion).
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