Prabowo Signs Law 16/2025 To Change The Ministry Of SOEs To The BUMN Regulatory Agency

JAKARTA - President Prabowo Subianto signed Law Number 16 of 2025 concerning State-Owned Enterprises (BUMN) which changed the governance and transformation of the Ministry of SOEs to the BUMN Regulatory Agency (BP).

The Ministry of State Law Documentation and Information Network page in Jakarta, quoted from Antara, Wednesday, as reported by the Law signed by the Head of State in Jakarta on October 6, 2025, is the fourth amendment to Law Number 19 of 2003 concerning SOEs.

Article 1 paragraph (21) of this law states that BP BUMN is a government institution that carries out government duties in the field of SOE regulation.

Meanwhile, Article 2 paragraph (3) explains that the government owns 1 percent of BUMN shares through the Head of BP BUMN, and 99 percent of series B shares through a new institution called the Anagata Nusantara Power Investment Management Agency (BPI Danantara).

The formation of BP BUMN is carried out by the President, and this institution is directly responsible to the President. The Head of BP BUMN acts as a representative of the Central Government as well as a regulator authorized to establish policies, regulate, foster, and supervise the management of SOEs.

Some of the powers of the Head of BP BUMN include establishing general policy directions for SOEs, governance policies, SOE roadmaps, SOE assignments, and main performance indicators.

The Head of BP BUMN is also authorized to form a new SOE, approve to delete the asset book, and propose a privatization plan.

In addition, this law regulates the establishment of BPI Danantara as a state-owned investment management institution. Based on Articles 3E and 3F, Danantara is tasked with managing investment holding, Operational Holding, and BUMN dividends, approving additional or reduced capital, forming new holdings, providing loans, and managing state-owned assets.

The initial capital of Danantara was set at a minimum of Rp1,000 trillion, originating from state capital participation and other legitimate sources.

Danantara can also make direct or indirect investments, cooperate with third parties, and deposit part of the profits into the state treasury after backup to cover investment risks.