Left Behind By Erick Thohir, Observer: Ministry Of SOEs Potentially Closed

JAKARTA - The seat of the Minister of State-Owned Enterprises (BUMN) is empty, after Erick Thohir left.

President Prabowo Subianto has yet to announce who will replace Erick Thohir.

As is known, President Prabowo inaugurated Erick Thohir as Minister of Youth and Sports (Menpora) replacing Dito Ariotedjo. The inauguration was held at the State Palace, Jakarta on Wednesday, September 17.

BUMN observer and NEXT Indonesia Center Director, Herry Gunawan, said that the vacancy in the position of the Minister of SOEs after being left by Erick Thohir was a momentum to review the existence of the Ministry of SOEs.

In fact, continued Herry, the ministry also has the potential to be dissolved. Herry said, this is in line with the ministry's main function which has been taken over by the Anagata Nusantara Power Investment Management Agency or Danantara Indonesia.

"The opportunity of the Ministry of SOEs after there are no more ministers, of course, three possibilities can remain standing as it is now and a new minister has been inaugurated, merged with Danantara, or dissolved," he told VOI, Thursday, September 18.

However, continued Herry, based on the BUMN Law, state-owned companies are no longer separated state assets, but as private institutions. This is stated in the BUMN Law Number 25, article 4A paragraph (5).

"Thus, what applies to BUMN regulations at this time should be the same as other private corporations. For this reason, regulations from the Ministry of SOEs are no longer needed," he said.

If you refer to the latest BUMN Law, continued Herry, actually President Prabowo does not have any obstacles to disbanding the ministry.

"Therefore, there are no obstacles for the President to dissolve the Ministry of SOEs," he explained.

According to Herry, the best practice in neighboring countries also shows the same thing. Like Singapore, which has Temasek and Malaysia with Khazanah, it is a superior sovereign wealth fund (SWF). Both countries do not have a Ministry of SOEs.

"Especially as the best practice, in Singapore which has good SWFs such as Temasek, because it contributes greatly to state revenues, it also does not require the Ministry of SOEs. Likewise with Malaysia which has Khazanah, SWF with good performance," he said.