BUMN Bill Ratified Into Law, Supervision Function Turns To Danantara Council

JAKARTA - The revision of the Law (UU) concerning the fourth amendment to Law Number 19 of 2003 concerning State-Owned Enterprises (BUMN) has officially become a law.

The 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.

Then, what is the difference between BP BUMN and the Ministry of SOEs?

Deputy Chairman of Commission VI and Chair of the BUMN Bill Working Committee said the fundamental difference between the Ministry of SOEs and BP BUMN lies in the supervisory function.

Andre explained that the supervisory function that used to be in the Ministry of SOEs is now directly under the Danantara Supervisory Board.

"What has changed is only the supervisory function. The issue of the GMS remains the same. 1 percent of the shares are still held by the regulatory agency, so that the GMS privileges are still carried out by BP BUMN. Including the approval of RKP through the BUMN GMS," he told reporters, Thursday, October 2.

Regarding the leadership of BP BUMN, Andre said that the appointment of the head of the agency was entirely under the authority of President Prabowo Subianto. Therefore, he said, it is not certain who will occupy the position.

"It still depends on the President. Who is appointed," he said.

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 of the Board of Commissioners and 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.