Minister of State-Owned Enterprises (SOEs) Erick Thohir clarified the evolving role of his ministry in light of the newly established sovereign wealth fund BPI Danantara during a hearing with SOEs and Investment Commission VI of the House of Representatives (DPR) on Tuesday, July 8, 2025.

Erick outlined that the Ministry of SOEs now has three core responsibilities under the revised State-Owned Enterprises Law, specifically Law No. 1/2025 which amends Law No. 19/2003: acting as regulator, supervisor, and Series A shareholder as well as managing “Perusahaan Umum” (public enterprises).

“As the holder of Series A shares, our duties go beyond general ownership. We’re involved in the appointment of directors and commissioners, the approval of shareholder meeting agendas, and other essential governance matters,” he said.

He cited that as a regulator, the ministry is responsible for setting the strategic direction of SOEs, drafting roadmaps, implementing state-assigned mandates, and executing corporate restructuring.

Then, as a supervisor, it oversees major SOEs now placed under BPI Danantara’s purview, including energy giant PT PLN, oil and gas firm PT Pertamina, and national flag carrier PT Garuda Indonesia.

Meanwhile, as a Series A shareholder, the ministry retains critical control over strategic policy, corporate governance, and leadership appointments within SOEs and Perum entities.

Despite the creation of Danantara, Erick stressed that the Ministry of SOEs still plays a vital governance and oversight role. To fulfill these responsibilities effectively, he proposed a 2026 budget of Rp604 billion (US$37.75 million) a significant increase from the Rp150 billion allocated in the government’s current indicative ceiling.

Budget justification

Erick said the Rp150 billion allocation would only cover basic personnel and operational expenses. “Given the scope of our work, especially in the regulatory, supervisory, and shareholder functions, we estimate a funding need of Rp604 billion,” he said.

The minister emphasized that the funding is crucial to maintaining good governance and driving performance improvements across Indonesia’s SOE landscape, especially amid structural changes introduced by Danantara’s launch.

In his presentation to lawmakers, Erick broke down the proposed budget into five key spending categories:

• Rp111 billion for regulatory functions
• Rp118 billion for oversight and supervision
• Rp101 billion for Series A shareholder responsibilities and performance improvements of Perum
• ​Rp117 billion for employee expenses
• Rp157 billion for administration and operations