He clarified that the SOE Ministry will not merge with the sovereign wealth fund manager, Daya Anagata Nusantara Investment Management Agency (Danantara), but will become a separate entity known as the SOEs Managing Agency.
“It will remain distinct, but with a new status as an agency,” Ahmad said at the parliamentary complex in Jakarta.
He explained that the bill, which revises Law No. 19 of 2003, is considered urgent, as many ministerial functions have already been taken over by Danantara. The ministry now mostly acts as a regulator, holding Series A shares and approving company regulations.
“Given this shift in function, there’s a proposal to reduce the ministry’s status to that of an authority,” he added.
The proposed legislation will also incorporate Constitutional Court rulings related to SOEs, including a ban on deputy ministers serving as commissioners of state-owned companies.
Ahmad said the bill is being shaped by extensive public input and aims to reflect current governance needs. Lawmakers plan to finalize the revision before the legislative session ends on October 2, 2025.
“This is what we’re currently deliberating. The results will be seen soon,” he said.
SOE governance expert Toto Pranoto supports the change, saying the downgrade could streamline oversight and improve corporate governance.
He noted that converting the ministry into an agency could reduce bureaucratic hurdles, limit political interference, and eliminate practices that violate Good Corporate Governance (GCG) principles.
The bill is part of broader efforts to modernize Indonesia’s SOE management and align it with global standards.
Related news: Indonesian government mulls turning SOEs Ministry into agency
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Translator: Bagus, Kenzu
Editor: Rahmad Nasution
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