The Corruption Eradication Commission (KPK) has gained greater legal clarity and authority to investigate corruption within state-owned enterprises (SOEs) following the ratification of the revised State-Owned Enterprises Law.

One of the key amendments removes the previous clause that excluded members of the board of directors, board of commissioners, and supervisory boards of SOEs from being categorized as state officials. As a result, these executives are now required to file State Officials’ Wealth Reports (LHKPN), similar to other public officials.

“The new law reaffirms KPK’s authority and provides legal certainty in eradicating corruption within SOEs, both in enforcement and prevention,” KPK spokesman Budi Prasetyo said as quoted in a statement on Thursday, October 2, 2025.

“As state officials, those holding such positions are obliged to report their assets through the LHKPN system,” he added.

Budi cited that asset transparency would serve as an effective preventive tool against corruption, while also clarifying KPK’s jurisdictional authority, which depends on the status of the official being investigated.

“With this law, everything becomes clear,” he said.

He added that KPK’s broader efforts aim to help SOEs strengthen good corporate governance and foster a more efficient, transparent, and ethical business environment.

“KPK remains open to providing assistance, supervision, and other forms of collaboration with BUMN,” Budi said.

Key changes in the revised SOE Law:

● Establishment of the SOEs Regulatory Agency (BP BUMN), a new body overseeing SOEs governance;

● Affirmation of the state’s 1 percent Series A Dwi Warna share ownership in BP BUMN;

● Adjustment of share composition in Holding Investment and Operational Holding companies under the Danantara Investment Management Agency;

● Prohibition of dual positions for ministers or deputy ministers in SOEs boards, following a Constitutional Court ruling;

● Removal of the clause stating that SOE directors, commissioners, and supervisors are not state officials;

● Reorganization of board structures in investment and operational holdings to be filled by professionals;

● Granting the Supreme Audit Agency (BPK) authority to auditSOEs finances to enhance transparency and accountability;

● Expanding BP BUMN’s authority to optimize the role of state-owned enterprises;

● Affirming gender equality in appointments to SOEs leadership and managerial positions;

● Regulations tax treatment for transactions involving BP BUMN, holdings, or third parties through government regulation;

● Exempting SOEs designated as fiscal instruments from BP BUMN control;

● Outlining the transition of personnel from the Ministry of SOEs to BP BUMN, among other structural provisions.