The House of Representatives (DPR) Commission VI is expediting discussions on the revision of Law No. 1/2025 on State-Owned Enterprises (SOEs) following the transfer of several SOEs ministerial functions to the Daya Anagata Nusantara Investment Management Agency (Danantara), which was established in late February 2025.
One key point debated in the Commission’s hearing with a number of legal experts on Thursday, September 25, 2025 was that SOE profits or losses should not be categorized as state gains or losses, but rather as corporate performance outcomes. The discussion also touched on the separation of SOE assets from state finances.
Commission VI Deputy Chair and Head of the Working Committee for the SOE Bill, Andre Rosiade, cited that interpretations often vary in practice, leading to disputes. He stressed that the spirit of the law is not to obstruct law enforcement but to provide space for the application of the business judgment rule.
“If an SOE director commits theft, arrest and imprison him. But the law is designed to protect business decisions, not to shield corruption,” Andre said during the hearing.
He added that the House will balance the need for the business judgment rule with the concerns of law enforcement agencies.
Legal scholars voiced differing perspectives. Mailinda Eka Yuniza, a lecturer at Gadjah Mada University, warned that categorizing SOE finances as state finances could make SOE executives vulnerable to corruption charges under Indonesia’s anti-corruption law. She suggested the problem may lie more in differing interpretations of the anti-corruption law provisions than in SOE financial status itself. Other experts present included Gede Widhiana Suarda from Jember University and Rudy Lukman from Lampung University.
The revision is part of the 2025 National Legislation Program (Prolegnas). According to the House Legislation Body (Baleg) Chair Bob Hasan, the discussions are targeted for completion this year, while a separate bill on Danantara has been included in the 2026 Prolegnas. He noted that Danantara’s establishment necessitates institutional adjustments despite the SOE Law having already been revised and passed earlier in 2025.
“Previously it was a ministry, but going forward it may become an agency,” Bob said.
Deputy House Speaker Sufmi Dasco Ahmad emphasized that the revision also incorporates Constitutional Court rulings, including a provision limiting deputy ministers to a maximum of two years as SOE commissioners. He said the bill also responds to public input, such as reconsidering whether SOE executives should be legally recognized as state officials.
Dasco highlighted that most functions of the Ministry of SOEs have already been absorbed by Danantara, leaving the ministry mainly as a regulator, holder of Series A shares, and reviewer of government regulation drafts. For this reason, he said, there is growing support to downgrade the ministry into an independent agency, potentially named the SOE Management Agency (BP BUMN), separate from Danantara.
“The ministry’s functions are now very limited, so reducing its status to an agency is being considered. We will see the outcome of deliberations,” Dasco noted, on Wednesday, September 24, 2025.
State Secretary Minister Prasetyo Hadi said that while the Ministry of SOEs acts as regulator, operational functions lie with Danantara. He confirmed that the new nomenclature is still under review with the House, noting input from all eight parliamentary factions.
“Issues raised include multiple positions, whether SOE executives should be classified as state officials, and the hope that SOEs can remain subject to oversight by the Audit Board (BPK) and the Corruption Eradication Commission (KPK),” Prasetyo said on Wednesday.
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