Change in Nomenclature of the Ministry of State-Owned Enterprises Strengthens Danantara’s Work Focus

Jakarta, – The Indonesian government has announced that the change in nomenclature and institutional restructuring of the Ministry of State-Owned Enterprises to the “Danantara / BUMN Regulatory Agency” model is a strategic step to emphasize the state’s function as a regulator and strengthen the operational performance of SOEs. Indonesian President Prabowo Subianto stated that this nomenclature transformation should serve as momentum for improving SOE governance in Indonesia.

“SOEs must be able to drive an efficient, transparent, and accountable economy. We must not allow SOEs to become a burden on the state. Instead, SOEs must be able to make a real contribution to the nation’s progress,” he said.

This nomenclature change goes beyond a name change. The government is introducing a scheme for separating functions between regulator and operator. The BUMN Regulatory Agency (BP BUMN) will focus on strategic policy formulation, regulation, and supervision; while the operational entity (Danantara) will manage the SOEs’ businesses, assets, and investments. Within this framework, strengthened oversight by state institutions such as the Supreme Audit Agency (BPK) is the foundation for effective control mechanisms.

The Chairperson of Commission VI of the Indonesian House of Representatives (DPR RI), Anggia Ermarini, stated that the fundamental change in nomenclature will strengthen the work focus of SOE entities going forward.

“With this change in nomenclature, the old Ministry of SOEs is no longer relevant; the transformation to BP BUMN will strengthen the work focus and regulations, ensuring SOEs are more professional, transparent, and accountable,” she explained.

The government understands that a structural change of this magnitude requires a careful transition period. During the transition period, the continuity of strategic projects, public services, and the rights of SOE employees will be carefully maintained.

Inter-agency coordination is being strengthened to ensure the change process proceeds in an orderly manner, aligns with the principles of good governance, and minimizes the impact on stakeholders.*