The House of Representatives (DPR) on Thursday, October 2, 2025, passed the long-awaited revision of the State-Owned Enterprises (SOEs) Law, marking a historic shift in how Indonesia manages its state companies.

This move marks the end of the Ministry of State-Owned Enterprises' two-decade-long era, which served as both regulator and operator.

The legislation on the fourth amendment to Law No. 19/2003 on SOEs was unanimously approved by all party factions during a plenary session at the Senayan parliamentary complex.

“Can this bill be approved to become law?” House Deputy Speaker Sufmi Dasco Ahmad asked, to which lawmakers responded in unison: “Agreed.”

The amendment introduces sweeping institutional changes, most notably the dissolution of the State-Owned Enterprises (SOEs) Ministry. In its place, the government will establish the State-Owned Enterprises Regulatory Agency (BP BUMN), a new regulatory body that will oversee SOEs, while operational and investment functions of the SOEs will be transferred to Danantara, the newly created holding entity.

“BP BUMN is the regulator, Danantara is the executor. Sothere will be no overlap,” Law Minister Supratman Andi Agtas said on September 6, 2025.

He cited that BP BUMN will focus on supervision, policy, and governance, while Danantara will run day-to-day investment and business operations.

Under the new structure, BP BUMN will hold 1 percent of “golden shares” (Series A Dwiwarna), granting veto power over key strategic decisions, including shareholder meetings. Danantara, on the other hand, will control 99 percent of Series B shares, giving it dominance in business and investment management.

“This separation of roles will ensure good governance and create a system of checks and balances. It is expected to serve the welfare of the Indonesian people,” Supratman said.

The law stipulates that BP BUMN’s leadership will be appointed directly by President Prabowo Subianto, with interim arrangements allowed until official appointments are made.

Technical matters such as dividend distribution between BP BUMN and Danantara will be regulated through a forthcoming Presidential Regulation.

The government hopes this dual institutional model splitting regulator and operator roles will make SOEs more efficient, transparent, and competitive, while safeguarding national interests through BP BUMN’s strategic oversight.

Key provisions in the new SOE Law:

1. Establishment of BP BUMN as the official regulatory body overseeing state companies.
2. Enhanced role for SOEs in optimizing national economic contribution.
3. ​Management of Series A “golden share” dividends under presidential approval.
4. Ban on ministers and deputy ministers serving concurrently as SOE commissioners, directors, or supervisors, in line with Constitutional Court ruling No. 128/PUU-XXIII/2025.
5. Removal of restrictions that classified directors, commissioners, and supervisors as state officials.
6. Mandatory gender equality in appointing commissioners, directors, and senior managers.
7. Clearer taxation rules for transactions involving SOEs, investment holdings, or third parties.
8. ​Exemptions for SOEs designated as fiscal policy instruments from BP BUMN oversight.
9. Strengthened authority of the State Audit Board (BPK) to audit SOEs.
10. Detailed transition mechanism from the SOE Ministry to BP BUMN.
11. Limits on concurrent ministerial positions in SOEs, with provisions for adjustment periods.