Govt Delays Statement on Judicial Review of BUMN Law
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The judicial review of Law No. 19/2003 on the State-Owned Enterprises (BUMN) was held by the Constitutional Court (MK) on Monday (19/3) afternoon with the agenda to hear the statement of the Government and the House of Representatives.

However, the House was unable to attend. Meanwhile, the Government represented by Erwin Fauzi from the Law and Human Rights Ministry and others expressed to postpone the delivery of statement by the Government.

In response, the Panel of Justices approved the rescheduling and asked the Petitioners to prepare the witnesses. Jhoni Boetja and colleague as Petitioners of case No. 12/PUU-XVI/2018 explained to the Panel of Justices that they would not present experts or witnesses. Therefore, the Panel of Justices decided to postpone the hearing until March 28, 2018.

Employees of the state-owned PT PLN (Persero) [(electricity firm)] review Article 14 paragraph (3) letters (a), (b), (d), (g), and (h) of the BUMN Law that reads, "The authorized party as intended by section (2) mustobtain approval of the Minister to make a resolution in the General Meeting of Shareholders on matters with respect to: a. a change in the amount of capital; b. amendments to the articles of association; d. a merger, consolidation, acquisition, division, and dissolution of the State-Owned Limited Liability Company (Persero); g. formation of subsidiaries or participation; h. transfer of assets.

The Petitioners’ attorney, Edy Supriyanto Saputro, argues that if the Government Regulation No. 72/2016 on the Amendment to Government Regulation No. 44/2006 on Procedures for the Investment and Administration of State Capital in State-Owned Enterprises and Limited-Liability Companies is one of the tools to privatize State-Owned Enterprises(SOEs) without exception. According to the Petitioners, SOEs whose production concerns the public will be privatized as stipulated in Government Regulation No. 39/2014 on the List of Business Fields Closed to Investment and Business Fields Open, with Conditions, to Investment. Private power plants, power transmission, and power distribution can have up to 95-100% of the shares, which will eliminate the state function to control the production branches that are important to the state concerning the lives of the people. 

The Petitioners consider that Article 14 paragraph (3) letters (a), (b), (d), (g), and (h) of the BUMN Law, the government represented by the minister as the shareholder may amend the Company\'s Articles of Association, including elements of mergers, consolidation, and transfer of assets, changes in the amount of capital, changes to the articles of association, acquisition and separation, without supervision by the House. (Nano Tresna Arfana/LA/Yuniar Widiastuti)


Monday, March 19, 2018 | 18:35 WIB 122