Ratification Of The BUMN Law Becomes A Positive Catalyse For Red Plate Issuers

BUMN (Photo: Doc. VOI)

JAKARTA - Associate Director of Research and Investment Pilarmas Investindo Sekuritas Maximilianus Nico Demus alias Nico conveyed that the ratification of the latest State-Owned Enterprises (BUMN) Law (BUMN) has the potential to have a significant impact on SOE issuers in the Indonesian capital market.

Overall, according to him, the law has the potential to become a positive catalyst for the evaluation of SOE issuers in the medium-long term, because it encourages transparency, professionalism, and efficiency.

"Meski demikian, transisi kelembagaan dari Kementerian BUMN ke Badan Pengaturan (BP) BUMN bisa menimbulkan volatility sementara di pasar akibat penyesuaian struktur dan regulasi," ujar Nico mengutip Antara.

Nico explained that the establishment of BP BUMN and strengthening the supervisory function and transparency by the Supreme Audit Agency (BPK) could improve corporate governance or Good Corporate Governance (GCG).

"This can strengthen investor confidence, especially foreign, because the risk of non-transparent practices is increasingly suppressed," said Nico.

He continued, the prohibition of concurrent positions for ministers/deputy ministers (wamen), as well as professional placements in commissioners, has the potential to increase management independence, so that business decisions are more oriented towards performance and profitability.

"Eminen BUMN can get efficiency boosts and business strategies that are more adaptive to the market," said Nico.

Then, affirming gender equality opens up opportunities for strengthening human resources (HR) in the board of directors and commissioners, which can create a more inclusive and innovative working climate.

"This is in line with the Environmental, Social, and Governance (ESG) trend, which is now the focus of global investors," said Nico again.

On the other hand, he reminded that the existence of stock structuring in investment and operational holdings, as well as special tax regulations, could create short-term uncertainty.

"Investors may still be waiting for technical certainty on implementation, especially regarding the potential impact on net profit and dividends," Nico said.

The Indonesian House of Representatives has officially ratified the BUMN Bill into law in the 6th Plenary Session of the Trial Period I-2025-2026 on Thursday (2/10).

The latest BUMN Law contains 12 main provisions, including the establishment of the BUMN Regulation Agency (BP), 1 percent ownership of series A dwiwarna shares by the state, regulating the composition of shares in investment and operational holdings, and prohibiting concurrent positions for ministers and deputy ministers in directors and commissioners.

Then, the abolition of state administrator status for directors/commissioners, professional placement in the board of commissioners, strengthening the authority of the BPK in financial examination, increasing the role of BP BUMN, and affirming gender equality in strategic positions.

Furthermore, tax arrangements for holding transactions, exemption from the authority of BP BUMN in SOEs that function as fiscal tools, as well as the mechanism for transitioning employees from the Ministry of SOEs to BP BUMN.