The Indonesian government has recently completed the transfer of Series B shares from four state-owned banks (BUMN), including Bank Mandiri (BMRI), Bank Rakyat Indonesia (BBRI), Bank Negara Indonesia (BBNI), and Bank Tabungan Negara (BBTN), to PT Biro Klasifikasi Indonesia (BKI). This move is part of the creation of a new operational holding company called Danantara.

The government’s actions are governed by the newly established regulations under the Undang-Undang Nomor 1 Tahun 2025 (Law No. 1 of 2025) regarding the third amendment to Law No. 19 of 2003 on State-Owned Enterprises. As per Peraturan Pemerintah No. 15 Tahun 2025 (Government Regulation No. 15 of 2025), the BUMN shares transferred will be part of an operational holding company managed under Danantara’s oversight. Danantara, the sovereign wealth fund of Indonesia, is responsible for managing assets worth approximately US$900 billion.

Details of the Share Transfer:

The shares of the four banks involved in the transfer were as follows:

1. Bank Mandiri (BMRI): The Indonesian government transferred 48.5 billion Series B shares, equivalent to 52% of the bank’s issued and paid-up shares, to BKI through the inbreng mechanism.
2. Bank Rakyat Indonesia (BBRI): BBRI transferred approximately 80.6 billion Series B shares, or 53.19% of the total issued shares, to BKI, maintaining the government’s control through its Series A shares.
3. Bank Negara Indonesia (BBNI): BNI transferred around 22.4 billion Series B and C shares, which amounted to 60% of the company’s total issued and paid-up shares, also through the inbreng mechanism.
4. Bank Tabungan Negara (BBTN): BTN transferred 8.42 billion Series B shares, equating to 60% of the bank’s total shares, to BKI under the same mechanism.

The government’s control remains intact as the transfer applies only to the Series B shares, and the Series A shares, which carry the government’s voting rights and decision-making power, remain in the hands of the government. As a result, the government continues to maintain indirect control over these BUMN banks via BKI.

Implications of the Transfer for State-Owned Enterprises:

The shift of the Series B shares to BKI does not change the government’s authority over these companies. Rather, it facilitates the creation of Danantara, which will serve as the new operational holding company, effectively managing the assets and operations of several state-owned enterprises.

The purpose of the establishment of this new holding company is to streamline the governance and operations of the state-owned enterprises under its management. The establishment of Danantara aims to consolidate state-owned entities, ensuring better management and higher efficiency in the long term. Additionally, it is expected that this restructuring will help enhance the global competitiveness of Indonesian state-owned companies.

About Danantara’s Role and Structure:

Danantara will serve as the sovereign wealth fund of Indonesia, holding the majority of shares in these BUMN entities under its operational holding umbrella. The funds managed by Danantara will be used for development projects across the country. According to Rosan Perkasa Roeslani, the CEO of Danantara, the organizational structure of the new entity will be announced soon, specifically on Monday, March 24, 2025. This new structure will define how Danantara will oversee and manage the BUMN entities under its control, aiming to provide clearer operational guidelines.

The transition to Danantara will also contribute to the enhancement of financial markets and boost investor confidence in Indonesia's economic stability, as this restructuring offers better risk management and improved business practices within the BUMN sector.

PHOTO: ERMAN SUBEKTI/INFOBANKNEWS

This article was created with AI assistance.