10 Points Of Amendment To The BUMN Law, Ada Danantara To The Rules For The Establishment Of Subsidiaries

SOE Minister Erick Thohir with the Chairman of Commission VI DPR RI Anggia Ermarini. (Photo: Doc. Ministry of SOEs)

JAKARTA - The Draft Law (RUU) on the third amendment to Law Number 19 of 2003 concerning State-Owned Enterprises (BUMN) was officially passed into Law (UU) this morning. There are 10 points of change in the law.

The law is an initiation of Commission VI of the DPR RI, where the biggest change in it is the inclusion of the tasks and functions of the Investment Management Agency (BPI) Daya Anagata Nusantara (Dantara).

In addition, the establishment of a subsidiary of BUMN is also regulated in it.

Chairman of Commission VI DPR RI Anggia Ermarini revealed that the BUMN Law was revised to strengthen the role and constitution of SOEs.

Moreover, he said, the previous law was more than 22 years old.

"The existing regulations governing SOEs, namely Law Number 19 of 2003 concerning state-owned enterprises, are over 22 years old and it is necessary to make changes to answer the challenges of today so that SOEs can improve their performance and contribute optimally to the national economy," said Anggia at the DPR RI building, Jakarta, Tuesday, February 4.

Anggia said, there were at least 10 points of change in the BUMN Law which had just been confirmed, including related to the adjustment of the definition of BUMN, and the formation of Danantara.

The following are 10 points of change in the BUMN Law which was passed today:

First, adjusting the definition of SOEs to accommodate SOEs so that SOEs can carry out their duties optimally and in accordance with the provisions of the relevant laws and regulations.

Second, the establishment of the Anagata Nusantara Power 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.

Three, the separation of regulatory functions and SOE operators to improve SOE management to be more professional and transparent.

Fourth, arrangements related to business judgment rules that can provide benefits for the implementation of BUMN corporate actions in order to improve the performance of SOEs.

Lima, penegasan terkait pengelolaan aset BUMN sesuai dengan prinsip tata kelola perusahaan yang baik yaitu dilakukan secara akuntabel dan berdasarkan perundang-undangan.

Six, 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 position of director, board of commissioners, and other positions in BUMN.

Seven, related arrangements for the formation of BUMN subsidiaries in more detail include the requirements and mechanisms for their establishment in order to ensure that BUMN subsidiaries make a maximum contribution to SOEs and the state.

Eight, arrangements are 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.

Nine, arrangements for the Internal Supervision Unit, Audit Committee, and other committees.

Ten, 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 located, as a form of social responsibility within SOEs.