As regulator of Indonesia’s state-owned enterprises, the new agency, like its ministry predecessor, will retain the state’s golden share – a 1 per cent Class A stake – in each enterprise.
The remaining 99 per cent of government-held shares will be transferred to Danantara, which will serve as the operator.
The “golden share” gives the government special veto rights, including the authority to approve changes to the company’s articles of association, mergers, acquisitions, liquidation, or decisions that affect national interest, Indonesian media outlets reported.
While BP BUMN will formally manage the Class A shares on behalf of the state, all operational revenues and dividend policies will be consolidated under Danantara.
Experts are divided on the government’s decision to create a new regulatory agency instead of letting Danantara have full control over Indonesia’s SOEs, with critics arguing it could create more bureaucracy, slow down decision-making, and hinder reforms.
“It actually makes things more complicated. It just lengthens the bureaucratic chain,” said Bhima Yudhistira, managing director of the Center of Economic and Law Studies (CELIOS).
Others, however, welcome the change, saying the new law provides a clearer separation of powers between Danantara and the BP BUMN – something that had been ambiguous under the ministry of SOEs.
Before the law was amended, it was not clear who SOEs reported to and who called the shots, experts said.
“Institutionally, SOEs now stand on firmer ground because their roles are clearly delineated,” said Achmad Nur Hidayat, an economist at Jakarta National Development University, who believes the two bodies can balance each other out.
TURNING AROUND STATE-OWNED ENTERPRISES
Since taking office last year, President Prabowo Subianto has made reforming Indonesia’s sprawling state-owned enterprises one of his priorities.
In multiple speeches, he has highlighted losses made by SOEs, warning that mismanagement and corruption would no longer be tolerated and that law enforcers were keeping a close eye.
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