MandalaAlert: On February 24, 2025, President Prabowo Subianto enacted Law Number 1 of 2025 to introduce a reforms aimed at enhancing the governance and competitiveness of Indonesian SOEs (BUMN). A pivotal aspect of this amendment is the establishment of the Daya Anagata Nusantara Investment Management Agency, known as Danantara, which is set to play a central role in the strategic management of state assets.
To respond the regulatory changes, Mandala presents our latest short study, "Newest Update on Law 1/2025 on State-Owned Enterprises (UU BUMN)," which provides an analysis of these legislative changes. The short study identifies key modifications to the previous law and explains the coordination and role delineation between BUMN, Danantara, and other relevant government stakeholders. Through this analysis, the study aims to provide clarity on the transformative changes within the BUMN landscape and their broader implications for the governance of SOEs and government asset.
The study explores key revisions that enhance SOE competitiveness, including structural adjustments such as the formation of Danantara, the special shares (Dwi-Warna) granted to the Ministry of SOEs, the Business Judgment Rule as legal framework to protect BUMN management decisions, and other related discussions.
Politics
Newest Update on Law 1/2025 on State Owned Enterprises
Publication
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March 10, 2025
#MandalaAlert: On February 24, 2025, President Prabowo Subianto enacted Law Number 1 of 2025 to introduce a reforms aimed at enhancing the governance and competitiveness of Indonesian SOEs (BUMN). A pivotal aspect of this amendment is the establishment of the Daya Anagata Nusantara Investment Management Agency, known as Danantara, which is set to play a central role in the strategic management of state assets.
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The purpose of this document is to provide general information about Newest Update on Law 1/2025 on State Owned Enterprises. The contents of this document should not be construed as specific recommendations or advice. For questions about the contents of this document, please contact Mandala Consulting. The information in this article is accurate as of the publication date. However, due to the rapidly changing nature of the law in Indonesia, the accuracy of the information will be limited.