Knock! DPR Approves BUMN Bill As Law

The Plenary Meeting of the DPR RI ratified the BUMN Bill (Photo: Ministry of SOEs)

The draft law (RUU) on the third amendment to Law Number 19 of 2003 concerning State-Owned Enterprises (BUMN) has been officially passed into Law (UU).

The law was passed in the 12th Plenary Meeting of the DPR for Session II 2024-2025 which was held today, at the DPR Building, Parliament Complex, Tuesday, February 4.

"Can the Draft Law on the Third Amendment to Law Number 19 of 2003 concerning SOEs be approved to be ratified into law?" asked Deputy Speaker of the Indonesian House of Representatives Sufmi Dasco Ahmad as the leader in the plenary meeting of the DPR RI.

Agree, replied all members who were followed by the beating of the hammer as a sign of the passing of the law.

Based on a report from Commission VI of the DPR RI, there were 8 factions who approved or accepted the BUMN Bill into law. The details are the PDIP, Golkar, Gerindra, Nasdem, Democrats, PAN, PKB, PPP, and the PKS faction.

Chairman of Commission VI DPR RI Anggia Ermarini said the factions in Commission VI of the DPR RI together with the previous government had approved the Draft Law on the Third Amendment to Law Number 19 of 2003 concerning BUMN on February 1.

He said that the meeting was also agreed to discuss further in the second level of discussion so that the decision was made at the DPR RI plenary meeting.

The discussion on the first level of discussion took place critically and deeply. Finally, through a working meeting held on February 1, 2025, the factions at Commission 6 of the DPR RI together with the government agreed to the Draft Law on the Third Amendment to Law Number 19 of 2003 concerning SOEs. For further discussion in the second level of discussion in the context of decision making at the plenary meeting of the DPR RI," said Anggia.

According to Anggia, the BUMN Bill was made considering the importance of the role of SOEs as mandated by the constitution. In addition to SOEs, it is also considered necessary to transform into a professional, efficient, and global competitive business entity.

Here are some points of regulation in the Draft Law on the Third Amendment to Law Number 19 of 2003 concerning SOEs:

1. Adjust the definition of SOEs to accommodate SOEs so that they can carry out their duties optimally and in accordance with the provisions of the relevant legislation.

2. The establishment of a Danantara investment management agency or BPI Danantara in order to improve SOE governance so that it is more optimal in carrying out its duties and functions to support national economic growth.

3. Separation of regulatory functions and SOE operators to improve SOE management to be more professional and transparent.

4. Arrangements related to Business Judgment Rule which can provide benefits for the implementation of BUMN corporate actions in order to improve the performance of SOEs.

5. Affirmation related to the management of state-owned assets in accordance with the principles of good corporate governance, namely carried out in an accountable manner and based on laws and regulations.

6. Arrangements related to human resources where SOEs provide opportunities for people with disabilities and the local community according to statutory provisions. In addition, female employees are given the opportunity to occupy the board of directors of the Board of Commissioners and other positions in BUMN.

7. The related arrangements for establishing a subsidiary of a state-owned company in more detail include the requirements and mechanisms for its establishment in order to ensure that its subsidiaries make a maximum contribution to SOEs and the state.

8. Arrangements fundamentally related to the privatization of SOEs including SOE criteria that can be privatized along with the mechanism in order to ensure that the privatization of SOEs provides benefits for the performance of SOEs, the community, and the state.

9. Arrangements regarding the Internal Supervision Unit of the Audit Committee and other committees.

10. Arrangements regarding the obligation of SOEs to carry out guidance, training, empowerment, and cooperation with micro, small, medium, and cooperative businesses as well as communities throughout the Republic of Indonesia by prioritizing the community around SOEs to be a form of social responsibility within SOEs.