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Govt confident with new 'inbreng' regulation
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State-Owned Enterprises Minister Rini Soemarno (right) talks to a staff member before holding a press conference following a Cabinet meeting at the State Palace. (Antara/Widodo S. Jusuf)
T
he government is confident in its decision to issue a new regulation permitting the establishment of state-owned enterprise (SOE) holdings, despite protest from the House of Representatives.
Last year, government regulation (PP) No. 72/2016 was issued as a revision to PP No. 44/2005 that regulates state capital injections into SOEs.
The government will go through with the new regulation as it is compatible with many other prevailing regulations, said State-Owned Enterprises Minister Rini Soemarno.
(Read also: Govt engaged in power struggle with lawmakers over SOE holding)
“Of course we’ll implement it. This regulation is also connected to PP No. 44, which is related to the State-Owned Enterprises Law, the State Treasury Law and the State Finances Law. It is all connected and all of it will be implemented,” she said.
The government claims that the new regulation is needed as a legal basis for any transaction mechanism, dubbed inbreng, in which the assets of one company are transferred to another and treated as a capital injection.
With the regulation, the government will be able to carry out inbreng without having to change the state budget and seek approval from the House. (bbn)
