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View all search resultsHouse passes SOE Law, downgrading ministry into regulatory body
Under the new structure, BP BUMN will act as the sector’s regulatory agency, while Danantara will serve as the executor in charge of around 1,000 state firms and as guarantor for investment holdings.
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House of Representatives Speaker Puan Maharani of the Indonesian Democratic Party of Struggle (PDI-P) addressed the legislature plenary session on June 24 at the Senayan legislative complex in Central Jakarta. (Antara/Asprilla Dwi Adha)
T
he House of Representatives passed sweeping revisions to the law governing state-owned enterprises (SOEs) in a plenary session on Thursday, dissolving the SOEs Ministry and establishing a new regulatory body, the SOEs Regulatory Agency (BP BUMN), as its replacement.
Around 500 staff members of the SOEs Ministry will be transferred to the new agency under civil service rules.
House Speaker Puan Maharani told the plenary session that the new law aimed to prevent overlapping authority, as state firms are now placed under the state asset fund Danantara, which was established in February.
“As Pak President Prabowo Subianto has emphasized, SOEs must function and serve in line with Article 33 [of the 1945 Constitution], for the greatest benefit of the people. […] We must now ensure there is no overlap between regulator and operator,” Puan said.
Under the new structure, BP BUMN will act as the sector’s regulatory agency, while Danantara will serve as the executor in charge of around 1,000 state firms and as guarantor for investment holdings.
Read also: Rushed SOE Law revision stops short of improving governance
Administrative and Bureaucratic Reform Minister Rini Widyantini said the urgency of changing the SOEs Ministry’s nomenclature lay in the need to ensure accountability and uphold good governance. According to her, provisions in the bill were intended to improve transparency and avoid conflicts of interest.
