The House of Representatives has accelerated revisions to the State-Owned Enterprises (SOE) Law, granting greater authority to state asset fund Danantara while stopping short of fully dissolving the SOEs Ministry. Lawmakers approved changes on Friday that would convert the ministry into the SOEs Regulatory Agency (BP BUMN), stripping it of operational control but maintaining a limited watchdog role. Danantara, meanwhile, will cement its position as the government’s investment arm, managing more than 900 SOEs and distributing dividends.
Law Minister Supratman Andi Agtas explained that BP BUMN would function as a regulator, while Danantara would act as executor of operations. Under the new framework, BP BUMN will retain the state’s symbolic 1 percent golden share (Series A), while Danantara will hold operational control of the remaining 99 percent (Series B). Although officials describe this as “effectively dissolving” the ministry, its functions remain largely unchanged. Critics argue the rushed revision creates redundancy rather than improving governance, with experts warning that overlapping responsibilities between BP BUMN and Danantara could expand bureaucracy and heighten risks of political interference.
