Revised SOE Law Bans Ministers and Deputies from Holding Dual Roles

September 26, 2025 | 01:41 pm

TEMPO.CO, Jakarta - The drafting and synchronization team for the fourth revision of the State-Owned Enterprises (SOE/BUMN) Law has formally established a prohibition on ministers or vice ministers holding multiple positions on the boards of directors, commissioners, and supervisory boards of SOEs.

This determination is based on the report from the drafting and synchronization team to the Chairperson of the Working Committee (Panja) on the revision of the SOE Law in the House of Representatives (DPR) Commission VI. "Fourth, the prohibition on holding multiple positions for ministers and vice ministers in the board of directors, commissioners, and the supervisory board of SOEs," said Vice Chairperson of DPR Commission VI Nurdin Halid at the Parliament Complex, Senayan, on Friday, September 26, 2025.

In addition, Nurdin stated that his team also stipulated that SOEs would be transformed from ministries into the State-Owned Enterprises Regulatory Body (BP BUMN). Furthermore, dividend shares of the two-color series A will be directly managed by BP BUMN upon the President's approval.

Furthermore, the drafting team also removed the provision that members of the board of directors, commissioners, and the supervisory board are not state administrators. The team also regulates the authority of the Financial Audit Agency (BPK) to inspect SOEs.

Previously, Deputy House Speaker Sufmi Dasco Ahmad stated that the revision of Law Number 1 of 2025 concerning SOEs would accommodate the Constitutional Court's decision, which prohibits ministers and vice ministers from holding multiple positions. In its decision, the Constitutional Court gave the government a maximum of two years to adjust to the decision.

"The Constitutional Court's decision about vice ministers only being allowed to serve as commissioners (SOE) for a maximum of two years is included in the revision of the SOE Law," Dasco said at the Parliament Complex, Jakarta, on Wednesday, September 24, 2025.

According to Dasco, the Constitutional Court Decision Number 128/PUU-XXIII/2025 is a fundamental reason for the House of Representatives and the government to revise the SOE Law, the last change of which was approved on February 4, 2025.

The revision of the SOE Law is expected to be finished this week. On that occasion, Dasco also confirmed that the Ministry of SOE will not be merged into Danantara. However, Dasco stated that the Ministry of SOE will be downgraded to an implementing body.

This is because revising the SOE Law directly will change SOE companies' authority since President Prabowo Subianto took office. Because Danantara largely carries out the operational functions of SOE, the Ministry of SOE now plays a regulatory role.

The revision of the SOE Law is now on the list of the National Legislative Program (Prolegnas) Priority 2025. The leaders of the House of Representatives have also received a Presidential Letter (Surpres) Number R62 dated September 19 regarding the Draft Law on the Fourth Amendment to Law Number 19 of 2023 concerning SOEs.

State Secretary Minister Prasetyo Hadi previously mentioned the possibility of downgrading the status of the Ministry of SOE. He stated that the government is still considering the various implications of changing the status of the Ministry of SOE, including the fate of the ministry's current civil servants.

"If there are consequences for the example mentioned earlier, those currently serving in the Ministry of SOE are part of what we will consider later," Prasetyo said at the Parliament Complex, Senayan, Jakarta, on Tuesday, September 23, 2025.

However, Prasetyo emphasized that changing the nomenclature and status of the Ministry of SOE depends on the outcome of discussions about revising the SOE Law. Prasetyo added that the government is pushing for the discussions on revising the SOE Law to be completed as soon as possible. "We hope it will be faster, if possible, finished this week, this week. If possible, finished before the recess, yes, we will finish it," he said.

Dian Rahma contributed to the writing of this article

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