Panel revision hearing of judicial review of the Law on State-Owned Enterprises attended by the Petitioners\' attorney on Monday (19/3) in the Plenary Courtroom of Constitutional Court. Photo by Humas MK/Ganie.

The Constitutional Court (MK) once again held a hearing of the judicial review of Article 2 paragraph (1) letters a and b and Article 4 paragraph (4) of Law No. 19/2003 on State-Owned Enterprises (BUMN Law) on Monday (19/3) at the Plenary Courtroom of the Constitutional Court. Albertus Magnus Putut Prabantoro and Kiki Syahnakri were registered as Petitioners of case No. 14/PUU-XVI/2018.

Through Ius Liona N. Syupriatna as one of the attorneys, the Petitioners explained that they had revised the petitum of the petition in accordance with the advice from the panel of justices in the previous session. Ius explained that in the petitum the Petitioners requested that the Court issue an order instructing the Minister of SOE and the Finance Minister to hold the process of forming SOE holding company at least until the decision of the Court in the a quo case that has permanent legal force.

In addition, Ius also mentioned that the Court ordered the President not to issue a government regulation concerning the equity participation of the state in state-owned limited liability company in the establishment of the holding company.

"The principal issue of the petition state that Article 2 paragraph (1) letters a and b and the phrase stipulated by government regulation in Article 4 paragraph (4) of the BUMN Law is contradictory to the 1945 Constitution of the Republic of Indonesia and does not have binding legal force as long as it is not interpreted as the purpose and main objective of the establishment of BUMN," Ius explained in the hearing led by Constitutional Justice I Dewa Gede Palguna.

The Petitioners argue that both articles impair their constitutional rights as citizens. They claimed that the articles were normatively abused and it led to the issuance Government Regulation No. 47 of 2017 on the Equity Participation of the State of the Republic of Indonesia in State-Owned Limited Liability Company. In the government regulation, also known as PP Holding BUMN Tambang, shares of three SOEs are transferred to PT Indonesia Asahan Aluminum Persero (Inalum). The three SOEs are PT Aneka Tambang Tbk (Persero), PT Timah Tbk (Persero), and PT Bukit Asam Tbk (Persero). In addition, the Petitioners claimed the implementation of Article 4 paragraph (4) of the BUMN Law shows the effect of state equity participation in other SOEs, so the SOE becomes a subsidiary of the other SOEs. This provisionhas eliminated the SOE and can be categorized as a new privatization model due to the transformation of SOE into SOE subsidiary without the mechanism of the state budget and House approval. (Sri Pujianti/LA/Yuniar Widiastuti)