Newest Update on Law 1/2025 on State Owned Enterprises

#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.