Changes in the Ministry of State-Owned Enterprises’ Nomenclature Strengthen Danantara’s Work Focus
Jakarta – The Indonesian government has announced that the change in nomenclature and institutional restructuring of the Ministry of State-Owned Enterprises (SOEs) to the “Danantara/BUMN Regulatory Agency” model is a strategic step in emphasizing the state’s role as regulator and strengthening the operational performance of SOEs. Indonesian President Prabowo Subianto stated that this nomenclature transformation should serve as momentum for improving SOE governance in Indonesia.
“SOEs must be able to drive the economy efficiently, transparently, and accountably. We must not allow SOEs to become a burden on the state. Instead, SOEs must be able to make a real contribution to the nation’s progress,” he said.
This nomenclature change goes beyond a mere name change. The government is introducing a scheme for separating the functions of regulator and operator. The State-Owned Enterprises Supervisory Agency (BP BUMN) will focus on strategic policy-making, regulation, and oversight; while the operational entity (Danantara) will manage the SOEs’ businesses, assets, and investments. Within this framework, strengthened oversight by state institutions such as the Supreme Audit Agency (BPK) is the foundation for effective control mechanisms.
The Chairperson of Commission VI of the Indonesian House of Representatives, Anggia Ermarini, stated that the fundamental change in nomenclature will strengthen the work focus of BUMN entities going forward.
“With this change in nomenclature, the old Ministry of State-Owned Enterprises is no longer relevant; the transformation to BP BUMN will strengthen the work focus and regulations, making SOEs more professional, transparent, and accountable,” he explained.
The government understands that structural changes of this magnitude require a careful transition period. During this transition period, the continuity of strategic projects, public services, and the rights of state-owned enterprise employees will be carefully maintained.
Cross-agency coordination is strengthened to ensure that the change process runs smoothly, aligns with the principles of good governance, and has minimal impact on stakeholders.*
