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The judicial review hearing of Law No. 19 of 2003 on State-Owned Enterprises (BUMN), Thursday (12/8/2021). Photo by Humas MK/Ifa.

Thursday, August 12, 2021 | 15:07 WIB

JAKARTA, Public Relations—The Constitutional Court (MK) held another judicial review hearing of Law No. 19 of 2003 on State-Owned Enterprises (SOE/BUMN) on Thursday, August 12, 2021. The eleventh hearing of the case No. 61/PUU-XVIII/2020 had been scheduled to hear the House of Representatives (DPR), who was absent and only submitted a written testimony. The case was filed by the Federation of Pertamina United Labor Unions (FSPPB), who argue that the provision on BUMN privatization in Article 77 letters c and d of the BUMN Law violates Article 33 paragraphs (2) and (3) of the 1945 Constitution.

“Because the House is absent and doesn’t exercise their right, this concludes the last hearing. Other parties have delivered their statements and presented experts and witnesses. Next, the concluding statements are to be submitted by Monday, August 23, 2021 to the Registrar’s Office,” said Chief Justice Anwar Usman, who chaired the hearing alongside the other eight constitutional justices in the plenary courtroom.

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Pertamina: Privatization Not Unconstitutional

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Restructuring of PT Pertamina Eliminates State Control on Stocks

Govt Requests That Establishment of Pertamina Subholdings Avoids Layoff

Expert: Privatization Ban Not Applicable Post-Amendment of 1945 Constitution

In the petition, the Petitioner asserts that Article 77 letters c and d of the BUMN Law prohibits the privatization of limited liability companies in certain business lines. They argue that based on the amendment to PT Pertamina’s (Persero) articles of association No. 27 of December 19, 2016, it does energy businesses. Therefore, it cannot be privatized based on the provision of Article 77 of the BUMN Law. Its businesses are integrated from upstream to downstream, covering upstream/exploration, processing/refinery, marketing and trading, as well as distribution/transportation and shipping.

The Petitioner stated that to improve competitiveness, increase value, expand business networks, and manage independence of State-Owned Enterprises (BUMN), the government may form a holding company for SOEs/company group/holding companies. One of the ways is to establish subholdings and subsidiaries of PT Pertamina as shown in the Decree of Pertamina Board of Directors No. Kpts-18/C00000.2020-SO on the Basic Organizational Structure of PT Pertamina: Subholding Upstream, Refining & Petrochemical, Commercial & Trading, Gas, Power & NRE, and Shipping Co. The privatization of PT Pertamina subsidiaries by the government has been planned to be done through IPO at subholding level. 

Writer        : Sri Pujianti
Editor        : Lulu Anjarsari P.
PR            : Fitri Yuliana
Translator  : Yuniar Widiastuti (NL)

Translation uploaded on 8/12/2021 19:52 WIB

Disclaimer: The original version of the news is in Indonesian. In case of any differences between the English and the Indonesian version, the Indonesian version will prevail.

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