The House of Representatives (DPR) passed the third amendment bill to Law No. 19/2003 on State-Owned Enterprises (SOEs) into law during the 12th Plenary House Session Period of Session Year 2024-2025 at the Nusantara II Building in Senayan, Central Jakarta on Tuesday, February 4, 2025.

Chairwoman of House’s Commission VI overseeing State-owned Enterprises, Anggia Erma Rini, spoke to Indonesia Business Post that based on the results of the discussion of the draft law on the SOEs, on the Third Amendment to Law Number 19 Year 2003 on SOEs, it was agreed by consensus on several outline points of regulation as follows:

1. Adjustment on the definition of SOEs in order to allow SOEs to carry out their duties optimally and in accordance with the relevant statutory provisions.

2. The establishment of the Daya Anagata Nusantara Investment Management Agency, or BPI Danantara, is to improve the governance of SOEs so that they are more optimal in carrying out their duties and functions to support national economic growth.

3. Separation of the regulatory and operator functions of SOEs in order to make the management of SOEs more professional and transparent.

4. Arrangements related to the Business Judgement Rule that can provide benefits for the implementation of SOE corporate actions are in order to improve SOEs’ performance.

5. Affirmation related to the management of SOE assets is in accordance with the principles of good corporate governance, namely carried out accountably and based on statutory regulations.

6. Arrangements related to Human Resources where SOEs provide opportunities for people with disabilities and local communities are in accordance with statutory provisions. In addition, female employees are given the opportunity to occupy positions on the Board of Directors, Board of Commissioners or other positions in BUMN.

7. Arrangements related to the establishment of SOE subsidiaries in more detail, including the requirements and mechanisms for their establishment, are in order to ensure that SOE subsidiaries make maximum contributions to SOEs and the State.

8. Fundamental arrangements related to the privatization of SOEs, including the criteria for SOEs that can be privatized and the mechanism, are to ensure that the privatization of SOEs provides benefits to the performance of SOEs, the society and the State.

9. Arrangements regarding internal control units, audit committees, and other committees.

10. Regulations regarding the obligation of SOEs to carry out guidance, training, empowerment and cooperation with micro, small, medium and cooperative enterprises and communities throughout the territory of the Republic of Indonesia by prioritizing communities in the area around the SOE are a form of social and environmental responsibility of the SOE.