Foreigners Are Given A Permit To Lead SOEs, What Are The Rules?

CEO of Danantara Rosan Roeslani (Photo: Mery Handayani/VOI)

JAKARTA - The government allows expatriates or foreign nationals (WNA) to lead State-Owned Enterprises (BUMN) companies. Then, what are the rules regarding this?

Head of the Investment Management Agency (BPI) Daya Anagata Nusantara (Dantara), Rosan Roeslani, said the provisions were in Law (UU) number 16 of 2025 concerning the fourth amendment to the BUMN Law number 19 of 2003.

"Just look at the law later. It must be seen, read more deeply. Don't cut it into pieces," said Rosan when met in Jakarta, Monday, October 20.

Referring to the BUMN Law, the requirements for SOE leadership are separated between SOEs with the status of the Company and Perum. Article 15A paragraph (1) point a states that in order to become a member of the Persero board of directors, it must meet the requirements of Indonesian citizens (WNI).

However, Article 15A paragraph (3) states that the BUMN Regulation Agency (BP) can change the requirements of these Indonesian citizens.

Then, Article 43C paragraph (1) point a states, to become a director of BUMN Perum must meet the requirements of Indonesian citizens. However, in paragraph (3) article 43C, it is stated that this requirement can also be changed by BP BUMN.

Previously, Danantara Indonesia CEO Rosan Roeslani said PT Garuda Indonesia (Persero) Tbk was an early example of implementing the policy. Currently, he said, the company is indeed carrying out a massive transformation.

In the Garuda Indonesia EGMS which was held on Wednesday, October 15, shareholders appointed two foreign nationals (WNA) as directors of the airline company Garuda Indonesia.

They are former Green Africa Airways boss Neil Raymond Mills, appointed Director of Garuda Indonesia Transformation, and Singapore Airlines official Balagopal Kunduvara, appointed as Director of Finance and Risk Management of Garuda Indonesia.

"If we look at the example of Garuda, this is the first to have a 25-year career at Singapore Airlines. The second is that it has been a very, very long career at Iberia Airlines, in three companies or four other airlines. So that's what we are for the Chief of Transformation because a very significant transformation is needed from Garuda," he said when met in the South Jakarta area, Thursday, October 16.

Rosan said management has a very important role in managing state-owned companies. Therefore, he said, the government made changes through the Draft Law (RUU) on the Fourth Amendment to Law Number 19 of 2003 concerning State-Owned Enterprises (BUMN).

Furthermore, Rosan explained that through this change, the government opened up opportunities for foreign expatriates or foreigners to lead state-owned companies.

"We see that management has a very, very important role. And therefore because the revision of the law has also been opened, we can put the expat at the management level and with a very strong background," he said.