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Minister of BUMN issues a new regulation to stop BUMN from establishing a subsidiary or JV

13 December 2019 14:06

JAKARTA. Minister of State-Owned Enterprises (BUMN) Erick Thohir officially prohibited state-owned companies to establish a subsidiary or joint venture (JV). 

The regulation is included in the Decree of the Minister of BUMN No. SK-315 / MBU / 12/2019 concerning the Organization of Subsidiaries or Joint Ventures in BUMN. This regulation was ratified on 12 December 2019.

Erick Thohir said that the government would organize and evaluate all subsidiaries and joint ventures owned by BUMN. The ministry, said Erick, will consolidate all of the subsidiaries and joint ventures to improve effectiveness.

Erick also mentioned that the moratorium on the establishment of subsidiaries and joint ventures of BUMN will apply until this regulation is revoked. This moratorium and evaluation apply to all companies affiliated with BUMN.

This policy excludes companies that will take part in tenders for construction and toll road projects currently being undertaken by BUMN. (AM/AR)

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