TEMPO.CO, Jakarta - Indonesia's Minister of Home Affairs, Tito Karnavian, reported that 27.5 percent of the country's 1,091 Regional Government-Owned Enterprises (BUMDs) are incurring losses.
"Out of these BUMDs, 678 made a profit, 300 incurred losses, and 113 have not reported their latest data," Tito stated during a working meeting with the House of Representatives Commission II at the Parliament Complex in Jakarta on Wednesday, July 16, 2025.
Tito explained that the combined assets of all 1,091 BUMDs reached Rp1,240 trillion, generating a gross profit of Rp29.6 trillion. After deductions, the net profit stood at Rp 24.1 trillion. However, the total losses from the struggling BUMDs amounted to Rp5.5 trillion. Despite this, the Minister noted that the majority of BUMDs still remain profitable.
At the regency level, Tito mentioned Central Java as having the highest number of loss-making BUMDs. For cities, East Java contributed the most.
At the provincial level, Jakarta and South Sumatra were the two areas with the highest number of BUMDs operating at a loss.
Tito said that one of the reasons for the losses was weak governance, particularly in oversight. He highlighted an imbalance where the number of supervisory boards or commissioners totaled 1,993, while there were only 1,911 directors.
"There's also a weakness in both internal supervision by the BUMDs themselves and external supervision, as 342 BUMDs lack internal supervisory units," the former National Police Chief elaborated.
Based on these findings, Tito proposed several steps to strengthen BUMD oversight. Firstly, clarifying the Minister's Role. He noted that the Home Affairs Minister's position as supervisor and overseer of BUMDs is not yet clearly regulated in Law No. 23 of 2014 concerning Regional Government.
Secondly, regulating mentoring and oversight. Tito requested specific regulations for the Minister's role in mentoring and overseeing the selection, appointment, and dismissal of supervisory boards, commissioners, and BUMD directors. "This is especially to ensure that those selected are professionals," he emphasized.
Thirdly, addressing career patterns. He highlighted the lack of the Home Affairs Minister's role in regulating career patterns, which is mandated in Government Regulation No. 54 of 2017 concerning BUMDs.
Fourthly, defining authority for awards and discipline. Tito also mentioned that his authority to give awards, implement discipline, and disband BUMDs has not been formally regulated.
According to Tito, strengthening the Home Affairs Minister's role in BUMD oversight could be achieved through the drafting of a specific law. "We kindly request the House of Representatives Commission II to support the formation of a law concerning BUMDs to more clearly regulate the management of BUMD issues at the government's initiative," he stated, adding that the Ministry of Home Affairs will prepare a draft BUMD Law.
Editor's Choice: Will Uncertified Land Be Seized by the State in 2026?
Click here to get the latest news updates from Tempo on Google News
Indonesia's Most Congested Cities: Bandung, Jakarta on Top
3 jam lalu
Bandung tops as the most congested city in Indonesia and ranks 12th for the longest average travel time in the world.
Pramono Anung Taps Diaspora Support During New York Visit, Explores Sister City Plan
9 jam lalu
Pramono Anung visited the Indonesian Consulate in New York, meeting with diaspora members who voiced support for a sister city plan.
Pramono Anung at UN Forum: Jakarta No Longer Just Administrative City
1 hari lalu
During the UN forum, Pramono Anung underscored the need for collaboration among cities and countries to tackle urbanization, climate crisis, and more.
France Marks Bastille Day in Jakarta, Highlights Military and Cultural Relations
1 hari lalu
The Bastille Day 2025 celebration not only took place in Paris, but also was celebrated with great enthusiasm in Jakarta. One such celebration was hosted by the French Embassy.
Pramono Anung Pursues Global Cooperation Opportunities for Jakarta at the UN
2 hari lalu
Jakarta Governor Pramono Anung attended the UN Forum in New York to promote city diplomacy and accelerate the achievement of the SDGs in Jakarta.
Jakarta Fair 2025 Records Rp7.3 Trillion Turnover with 5.9 Million Visitors
2 hari lalu
The Jakarta Fair 2025 event claims to have reached a turnover of Rp7.3 trillion with a total of 5.9 million visitors.
Anies Baswedan Addresses Issue of Term Changes in Indonesia's Democratic Practices
3 hari lalu
Former Jakarta Governor Anies Baswedan addresses the issue of term changes in democratic practices in Indonesia.
BMKG: Potential Light Rain Showers in Several Areas of Jakarta This Afternoon
3 hari lalu
The Meteorology, Climatology, and Geophysics Agency (BMKG) predicts the weather in Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek) to be mostly sunny with some areas experiencing thick clouds on Sunday, July 13, 2025. However, there is a potential for light rain showers in several areas in the afternoon. The situation is monitored through BMKG's official website and Instagram account.
Police Enlist Forensic Psychologists to Investigate Young Diplomat's Death in Jakarta
4 hari lalu
The involvement of a forensic psychologist in this investigation is to delve into the profile of diplomat Arya Daru.
Landslide-Prone Zones Identified in South and East Jakarta
4 hari lalu
BPBD declares several areas in Jakarta are at risk of potential landslides this month.
