October 24, 2025 | 10:00 am
TEMPO.CO, Jakarta - Two weeks after the enactment of Law No. 16/2025 on the Fourth Amendment to Law No. 19/2003 concerning State-Owned Enterprises (SOEs), President Prabowo Subianto reiterated his targets for Indonesia’s state-owned companies. One of his boldest goals is to slash the number of SOEs from around 1,000 to between 200 and 400. “That’s a more rational figure,” Prabowo said at the Forbes Global CEO Conference in Jakarta on Wednesday, October 15, 2025.
The consolidation of SOEs is one of Prabowo’s key mandates for the Daya Anagata Nusantara Investment Management Agency (Danantara). The agency was designed to manage state assets worth Rp16,600 trillion (around US$1 trillion). That special privilege has earned Danantara what many describe as a ‘red carpet’ treatment from both the government and the House of Representatives (DPR).
Danantara’s establishment was formalized through Law No. 1/2025 concerning the Third Amendment to the SOE Law in February 2025, recognizing the agency as a new entity overseeing the state’s investment portfolio. Yet the law sparked controversy, particularly over provisions that could restrict law enforcement’s ability to investigate corruption within SOEs. Critics also argued that the SOEs Ministry’s role overlapped with Danantara’s mandate.
On September 19, 2025, the President sent a letter to the DPR requesting a fourth revision of the SOE Law. Within less than two weeks, lawmakers passed the amendment, transforming the SOEs Ministry into the State-Owned Enterprise Regulatory Agency (BP BUMN). Under the new arrangement, BP BUMN acts as the regulator, while Danantara operates as the investment and commercial asset manager.
But the revision introduced a new layer of complexity. Bhima Yudhistira Adhinegara, Executive Director of the Center of Economic and Law Studies (Celios), warned that the changes could prolong bureaucratic procedures and reduce the agility of SOEs. Under the new law, every corporate action must now be coordinated with both Danantara and BP BUMN. “Decision-making will take longer,” Bhima told Tempo on Monday, October 13.
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