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Jakarta Post

More lawmakers reject SOE regulation

  • News Desk

    The Jakarta Post

Jakarta   /   Wed, February 15, 2017   /  11:06 am
More lawmakers reject SOE regulation The State-Owned Enterprises (SOEs) Ministry building is shown in this picture. Lawmakers have rejected a government regulation that allows for the sale of state assets without approval from the House of Representatives. (Kontan/Ahmad Fauzie)

More lawmakers have expressed their rejection of Government Regulation (PP) No. 72/2016 on the procedure for capital injection into state-owned enterprises (SOEs) and the management of state capital.

They particularly reject articles that allow for the sale of state assets without approval from the House of Representatives.

“I agree that the regulation should be rejected,” said chair of the House’s Commission XI overseeing finance and banking affairs, Melchias Markus Mekeng, as reported by on Wednesday, adding that the regulation endangered state assets.

Previously, the House's Commission VI, overseeing state-owned enterprises, had told the government to revoke PP No. 22/2016, which was a revision of PP No. 44/2005, for a similar reason.

(Read also: SOEs holding regulation not in line with lawssays economist)

“We [Commission VI] agree that anything relating to state assets should be discussed in the House of Representatives,” Mekeng noted.

Without a mechanism in the House, the government could easily sell state assets.

“If the regulation is not revoked, don’t be surprised if SOEs are sold to foreigners. Even Monas [the National Monument] could be sold without our knowledge. It is dangerous,” he said, adding that the regulation also contradicted several other regulations. (bbn)

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