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View all search resultsRushed SOE Law revision stops short of improving governance
If passed in the coming days, the amendment would “effectively dissolve” the ministry and replace it with the new agency, although its duties would remain “largely the same,” the government stated.
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Lawmakers attend a House of Representatives plenary session on July 1 at the Senayan legislative complex in Central Jakarta. (Anatara/Dhemas Reviyanto)
T
he House of Representatives has fast-tracked yet another overhaul of the State-Owned Enterprises (SOE) Law to give more authority to state asset fund Danantara. However, in the latest development, it has stopped short of fully dissolving the SOEs Ministry or turning it into a stronger regulatory body, a move some experts say creates redundancy without improving governance.
On Friday, lawmakers approved changes that would convert the ministry into the SOEs Regulatory Agency (BP BUMN), stripping it of operational control while preserving its limited watchdog role.
Its operational counterpart, Danantara, is poised to cement its grip as the powerhouse managing more than 900 SOEs and serving as the government’s investment arm for distributing SOE dividends.
“It’s different. This [BP BUMN will act] as regulator, while Danantara will be the executor handling operations,” Law Minister Supratman Andi Agtas told reporters on Friday, responding to questions about whether the two agencies would stand on equal footing.
If passed in the coming days, the amendment would “effectively dissolve” the ministry and replace it with the new agency, although its duties would remain “largely the same,” he added.
Under the revised structure, BP BUMN will retain the government’s symbolic 1 percent golden share (Series A), while Danantara will take charge of the remaining 99 percent (Series B).
On Wednesday, Deputy House Speaker Sufmi Dasco Ahmad acknowledged that the new revisions would formalize SOEs Ministry’s reduced role, as many of its functions have already been absorbed by Danantara.
