Indonesia Passes Revised SOE Law, Transforming Ministry into Supervisory Agency
Key Takeaways
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JAKARTA, Investortrust.id — Indonesia’s House of Representatives passed the fourth amendment to the State-Owned Enterprises Law on Thursday, Oct 2, 2025, in a move that dissolves the Ministry of State-Owned Enterprises and establishes a new supervisory body to oversee the sector.
“Can the draft law on the fourth amendment to Law Number 19 of 2003 on State-Owned Enterprises be approved as law?” asked Deputy Speaker Sufmi Dasco Ahmad during the plenary session at the parliament building in Jakarta. Lawmakers responded in unison, “Agreed,” followed by the gavel strike.
The new law mandates that state-owned companies align with President Prabowo Subianto’s priority programs, including food and energy security, downstream industry, and national industrialization. Lawmakers emphasized that the revisions aimed to strengthen governance, ensure accountability, and reinforce the role of state enterprises as agents of economic transformation.
Anggia Ermarini, Chairwoman of House Commission VI, said the deliberations involved academics and public stakeholders before consensus was reached on Sept 26, 2025, between parliament and the government. “The discussions were conducted intensively, and the approval reflects a shared commitment to optimize the role of SOEs in national development,” she said.
The revised law introduced 12 major provisions. These included the creation of the State-Owned Enterprises Supervisory Agency, or BP BUMN, which will assume regulatory functions; affirmation of the state’s 1 percent golden share through dual-class shares; restructuring of shareholdings in the government’s investment holding, Danantara; and a ban on ministers and deputy ministers holding concurrent positions on SOE boards, following a Constitutional Court ruling. Other key changes addressed gender equality in executive positions, taxation rules for SOE transactions, clearer authority for the Supreme Audit Agency (BPK) in financial oversight, and the transition of SOE Ministry staff to BP BUMN.
Minister for Administrative and Bureaucratic Reform Rini Widyantini confirmed that President Prabowo had endorsed the sweeping changes. “With gratitude to God Almighty, the President has agreed that the fourth amendment to the State-Owned Enterprises Law be enacted into law,” she said during the plenary.
Rini stressed that the reform was intended to separate regulatory and operational functions, ensuring SOEs were managed according to global standards of corporate governance. “The goal is for SOEs to compete regionally and globally, while at the same time serving as catalysts for inclusive and sustainable economic transformation,” she said.
She added that BP BUMN would serve as a clear legal entity with expanded authority, improving transparency and accountability. “The changes provide legal certainty regarding the position of SOEs in their relationship with the President, supervisory institutions, and the public,” Rini explained.
House Speaker Puan Maharani welcomed the passage of the law and expressed hope that its implementation would deliver meaningful results. “The law has now been passed, and with SOEs transformed under BP BUMN, I hope the implementation on the ground can run effectively,” she told reporters at the parliament complex.
She noted that the revisions were aligned with President Prabowo’s direction for SOEs to operate in line with Article 33 of the Constitution, which mandates that state enterprises work for the benefit of all Indonesians. “This reform must ensure that SOEs truly function for the greatest prosperity of the people,” she said.
Puan emphasized the need to avoid overlap between regulators and operators, especially with the establishment of Danantara as the state’s investment holding entity. “We must ensure there is no duplication between regulators and operators,” she said.
With the new legal framework in place, Puan urged swift follow-up measures. “The law now provides the umbrella for implementation, and I expect the steps to be taken immediately so that improvements will benefit Indonesia’s future,” she said.