Holds Plenary Meeting, DPR Passes Revision Of BUMN Law

JAKARTA - The Indonesian House of Representatives (DPR) ratified the Revision of the Law (UU) regarding the fourth amendment to Law Number 19 of 2003 concerning State-Owned Enterprises (BUMN).

This ratification was carried out in the 6th DPR plenary meeting chaired by the Deputy Speaker of the Indonesian House of Representatives, Sumi Dasco Ahmad, at the DPR Building, Jakarta, Thursday, October 2.

During the meeting, Dasco asked for the approval of the factions of the draft law on the fourth amendment to Law number 19 of 2003 concerning State-Owned Enterprises (BUMN).

"Can the Draft Law on the Fourth Amendment to Law Number 19 of 2003 concerning SOEs, be approved to be passed into law?" Dasco asked in a plenary meeting.

"Agreed," replied all members of the DPR who were present.

"Thank you," Dasco continued by tapping the hammer as a sign of the ratification of the BUMN Law.

Meanwhile, Chairman of Commission VI DPR RI Anggia Ermarini said state-owned enterprises must be able to carry out vital state functions in order to manage the potential and resources they have and are needed for the greatest prosperity of the people.

"Given the importance of the role of SOEs as mandated by the constitution, SOEs need to continue to transform, not only to become professional and profitable business entities, but must also be a transparent and accountable business entity," said Anggia.

Anggia said that the improvement in SOE governance realized through the Draft Law on the Fourth Amendment to the BUMN Law became very relevant and important to implement.

"So that in the end we all hope that SOEs in Indonesia will be able to contribute optimally to the implementation of government priority programs in realizing food security, energy security, downstream programs and industrialization," he said.

"As well as other national strategic programs, which will then increase in economic growth and improve people's welfare," he continued.

Here are some points of regulation in the Draft Law on the Fourth Amendment to the BUMN Law:

1. Arrangements related to institutions that carry out government duties in the BUMN sector with a nomenclature of the BUMN regulatory agency which is subsequently called BP BUMN.

2. Affirmation of Series A share ownership is inherited 1 percent by the state in the BP BUMN agency.

3. Monitoring the composition of shares in the Investment Holding Holding Company and the Main Operations Company at the Danantara investment management agency.

4. Arrangements related to the prohibition of concurrent positions for the Minister and Deputy Minister at the Board of Directors and Supervisory Board of SOEs as a follow-up to the decision of the Constitutional Court.

5. The abolition of the provisions of the members of the Board of Directors, the Board of Commissioners and the Supervisory Board of SOEs is not a state administration.

6. Arrangement of the position of the Board of Commissioners in the Operational Holding Investment Holding which is filled by professionals.

7. Regulation of the SOE's financial audit authority by the financial audit agency in various ways increases the transparency and accountability of state-owned financial management.

8. Addition of BP BUMN's authority in optimizing the role of SOEs.

9. Affirmation of gender equality for BUMN employees who occupy the Position of Director of Commissioners and Positions Menajeral in SOEs.

10. Tax treatment for transactions involving the Investment Holding Operational Holding agency or third party regulated in government regulations.

11. Arrange for the exception of BP BUMN control to BUMN which is designated as a fiscal tool.

12. Arrange the mechanism for the transfer of employment status from the Ministry of SOEs to BP BUMN. As well as other substance arrangements.