Economics analyst Ichsanuddin Noorsy as expert presented by the Petitioner when delivering his expertise in the trial of the judicial review hearing of the State-Owned Enterprises (BUMN) Law, Tuesday (17/4) in the Plenary Courtroom of the Constitutional Court. Photo by Humas MK/Ganie.
Holdingization of State-Owned Enterprises (BUMN) must fulfill terms, i.e. the Government should segregate the public sector, the commercial sector, and the quasi-sector. This was conveyed by economics analyst Ichsanuddin Noorsy as the Petitioners’ expert in the judicial review hearing of Law No. 19/2003 on the State-Owned Enterprises (BUMN). The fifth hearing of case Number 12/PUU-XVI/2018 was held by the Constitutional Court (MK) on Tuesday (11/4) in the Plenary Courtroom of the Constitutional Court.
"Holdingization is due to the importance of the Government’s segregation of the public sector, the commercial sector, and the quasi-sector. [It could even be sorted out] into five, not into three," Ichsanuddin said before the Panel of Justices led by Chief Justice Anwar Usman.
On that basis, Ichsanuddin added, Holdingization, where a merger occurs, should be done. "[The SOEs] are merged in such a way, so that management is efficient and effective as a business entity. The second condition is, in addition to such a position, the background. This business entity is not touched in a practical political approach. Up to the reform period, my idea of a non-touched political entity and sector segregation did not occur," Ichsanuddin said.
Ichsanuddin continued, the merger should not be done haphazardly, because it requires supervision. He cited the case of the inclusion of Pelindo II in Hutchison Port, which later shown by an audit Supreme Audit Agency (BPK) to have caused a loss of Rp 4 trillion, because the Government did not run any supervision.
"For supervision alone, Pansus Pelindo II, the Government did not do it. Just like the decision of the Constitutional Court, the decision to revoke the Water Resources Law was not implemented. President Joko Widodo responded in January 2016. What does that mean? If even inclusion is problematic, not resolved, what about a merger?" Ichsanuddin said.
Oversight Function
Economics analyst F.X. Sugiyanto, another expert for the Government, described the oversight function by the state. According to him, the oversight function by the state is carried out by the state. In this case the Government supervises and controls for the implementation of state control over the production branches that are important and/or control the livelihood of the people, which are done for the greatest prosperity of the people.
Sugiyanto said the Government will still have the ability to control the business, so it will also have the ability to control the price of goods and/or services at a reasonable price level and affordable by the public.
"Such business control includes not only the production, but also the distribution of goods and/or services. If an individual, a group of individuals, or a state controls the production of a good or service, or controls its distribution including marketing, then the individual, group, or state will be able to adjust the price according to their desire. In terms of control by the state through SOEs, the desired price is a reasonable price that is affordable by the community in order to protect the community to create justice," Sugiyanto said.
Not Free
Meanwhile, Government expert Refly Harun said that by observing the provisions in the BUMN Law it can be concluded that in the implementation of corporate and financial management, SOEs are not free of supervision. Oversight of SOEs is layered, both internally and externally.
"However, in relation to the independence of SOEs to run their business activities, it is necessary to note Article 91 of the BUMN Law, that parties other than SOEs are prohibited from interfering in the management of SOEs," Refly said as a constitutional law expert.
Thus, Refly affirmed, in running their business, SOEs must uphold the principles of independence and professionalism by closing the door to intervention of other parties in the management of SOEs, including the House of Representatives, so that SOEs business objectives can be achieved properly.
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."
Petitioners of case No. 12/PUU-XVI/2018 argue 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)
Wednesday, April 18, 2018 | 17:31 WIB 139