By: Nancy Dora )*
The management of state-owned enterprises (SOEs) has entered a new phase with the ratification of the Fourth Amendment to Law Number 19 of 2023 into law. A fundamental change in this regulation is the transformation of the Ministry of SOEs into the SOE Regulatory Agency (BP BUMN), which functions as a regulator and supervisor, while Danantara is designated as the executor of state investment. This structural change reflects the government’s serious efforts to strengthen SOE governance to make it more effective, transparent, and oriented towards long-term development.
The supervisory function is a key element of this change. While previously the Ministry of State-Owned Enterprises held direct authority, oversight is now carried out by the Danantara Supervisory Board under the coordination of the State-Owned Enterprises Supervisory Agency (BP BUMN). This separation of roles between regulator and operator is expected to provide clearer governance. Andre Rosiade, Chair of the BUMN Bill Working Committee, emphasized that the main difference in this change lies in the shift in supervisory functions, while basic mechanisms such as general shareholder meetings remain in place. Therefore, the primary focus of this reform is to clarify the functional distinction to make SOEs more efficient and accountable.
This institutional shift also carries administrative consequences. The status of employees of the Ministry of State-Owned Enterprises automatically changes to that of state civil servants (ASN) under the BP BUMN (State-Owned Enterprises Agency). This provides legal certainty and maintains bureaucratic stability, ensuring a smooth institutional transition. With clear status, employees can continue to carry out their duties professionally while supporting the strengthening of the oversight function.
Minister of Law Supratman Andi Agtas assessed that the change in nomenclature from the Ministry of State-Owned Enterprises to BP BUMN was a logical step following the ratification of this revised law. He explained that the transition process would be carefully prepared by the Ministry of Administrative and Bureaucratic Reform. According to him, the presence of BP BUMN provides a clear role, namely as a regulator that will ensure that SOE management runs according to regulations. Meanwhile, Danantara remains focused on carrying out investment execution functions. In Supratman’s view, this separation will create healthier governance because there will no longer be overlap between regulatory and implementation functions.
Supratman also emphasized that the appointment of the Head of BP BUMN rests entirely with President Prabowo Subianto. This is crucial for maintaining political legitimacy and strengthening the government’s strategic control in determining the direction of SOE management. Presidential control also ensures that implemented policies align with the national development vision. In this context, the presence of BP BUMN is not merely a change in nomenclature, but also a crucial instrument in streamlining the implementation of state policies in strategic sectors.
A similar view was expressed by Deputy Chairman of Commission VI of the House of Representatives, Nurdin Halid, who emphasized that this change in nomenclature aims to emphasize the institution’s function. He explained that the BP BUMN will become a ministerial-level institution that carries out specific government duties in the field of SOE regulation. According to Nurdin, the existence of the BP BUMN is part of the formulation of a new governance system that positions SOEs as public bodies with stronger oversight. This not only ensures transparency but also opens up space for gender equality in the ranks of directors, commissioners, and managerial positions of SOEs, as stipulated in the revised law.
From a governance perspective, the presence of BP BUMN provides clarity of function in its relationship with Danantara. BP BUMN will retain control over the dividends of the Series A bicolor shares, which are directly managed with the approval of the President. Meanwhile, Danantara will manage state assets and investments. With the BP BUMN’s work plan and financial approval mechanism, every strategic decision by Danantara will undergo a more transparent oversight process. This is a crucial instrument to ensure that Danantara operates according to its mandate, namely strengthening state investment and supporting national development.
While this change requires a transition period, it can be seen as a manifestation of the government’s commitment to strengthening good corporate governance principles in the management of SOEs. The separation of regulatory and operator functions will encourage disciplined oversight while allowing Danantara to focus more on its role as executor. With strict yet measured oversight, the risk of conflicts of interest can be minimized while maintaining the effectiveness of SOE performance.
The presence of BP BUMN also aligns with the long-term need to make state-owned enterprises (SOEs) the driving force of the national economy. Amidst global dynamics, SOEs are not only required to contribute dividends but also to play a strategic role in maintaining economic sovereignty, expanding investment, and creating jobs. With Danantara strengthened through BP BUMN’s oversight, it is hoped that the effectiveness of state asset management will increase, thereby increasing the impact on the community.
Ultimately, Danantara’s effectiveness is largely determined by how the State-Owned Enterprises Supervisory Agency (BP BUMN) carries out its role. If BP BUMN can become a professional, transparent, and public-interest-oriented regulator, Danantara will have clearer and more focused latitude in executing investment policies. With a strong legal foundation and political support from the government and the House of Representatives (DPR), this reform has the potential to usher SOEs into a new era of greater effectiveness, competitiveness, and tangible contributions to the nation’s well-being.
)* The author is an economic observer