Jokowi Officially Disbands 3 SOEs Without Liquidation, Farmers To Perinus Merge To Other Companies

President of the Republic of Indonesia, Joko Widodo. (Photo: Doc. Setpres)

JAKARTA - President Joko Widodo (Jokowi) has officially dissolved three state-owned enterprises (BUMN) by merging them into other state-owned companies. The aim is to increase the efficiency and effectiveness of the company in carrying out its duties. The three SOEs that were disbanded were PT Bhanda Graha Reksa (Persero), PT Pertani (Persero), and PT Perikanan Nusantara (Persero).

The decision to dissolve the three SOEs has been stated in a Government Regulation (PP) signed by President Jokowi on September 15, 2021. Meanwhile, the policy has also been promulgated and recorded in the state gazette by Minister of Law and Human Rights, Yasonna H Laoly, on the same date.

The first is the merger of PT Bhanda Ghara Reksa into PT Indonesia Trading Company (PPI). This merger is through Government Regulation No. 97 of 2021 which was signed by Jokowi on September 15, 2021.

"That to increase efficiency, effectiveness, and penetration of the distribution and trade network business, as well as to support the availability and affordability of food, it is necessary to merge the company (Persero) PT Bhanda Ghara Reksa into the company (Persero) PT Perusahaan Trading Indonesia", said Jokowi in the consideration of Government Regulation No. 97 of 2021, quoted Monday, September 20.

Based on article 2 (2), with the merger, PT Bhanda Ghara Reksa was declared disbanded without liquidation provided that all rights and obligations, as well as the assets of the company, were transferred by law to PT Perusahaan Trading Indonesia.

"The amount of the value of assets as referred to in paragraph (1) is determined by the minister of finance based on the proposal of the minister of state-owned enterprises", reads article 2 (2).

Second, the merger of the company PT Pertani into PT Sang Hyang Seri. The merger of the two companies is stated in Government Regulation No. 98 of 2021 which was signed by Jokowi on September 15, 2021.

"The Company Company (Persero) PT Pertani whose status as a Limited Liability Company (Persero) was determined based on Government Regulation No. 2l of 1973 concerning the Transfer of the Form of a State Agricultural Company to a Limited Liability Company (Persero) which was merged into a Limited Liability Company (Persero) PT Sang Hyang Seri whose status was as a Limited Liability Company (Persero) is determined based on Government Regulation Number 18 of 1995 concerning the Transfer of the Sang Hyang Seri Public Company (Perum) to become a Limited Liability Company (Persero)", reads Article 1 of PP 98/2021.

The merger resulted in Pertani being declared disbanded without liquidation provided that all rights and obligations, as well as the company's assets, were transferred to PT Sang Hyang Seri.

"The amount of the value of assets as referred to in paragraph (1) is determined by the Minister of Finance based on the proposal of the Minister of State-Owned Enterprises", reads Article 2 (2) of PP 98/2021.

Lastly is the fisheries sector. Merger of PT Perikanan Nusantara (Perinus) into PT Perikanan Indonesia (Perindo). The merger policy was determined through Government Regulation No. 99 of 2021 which was signed by Jokowi on September 15, 2021.

As for the consideration of Government Regulation No. 99 of 2021, Jokowi explained that the merger was carried out to increase efficiency, effectiveness, and penetration of the fisheries business network. In addition, the merger is also to support the availability, affordability, inclusiveness, and quality of fisheries.

With the merger of the companies, Perinus was declared disbanded without liquidation provided that all rights and obligations, as well as the assets of the company, were transferred to Perindo. Meanwhile, the combined value of Perinus' assets will be determined by the finance minister according to the proposal of the SOE minister.