Petitioners attending the preliminary hearing of the judicial review of the Ministry Law and SOE Law, Thursday (7/31/2025), both in person and virtually. Photo by MKRI/IlhamWM.

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JAKARTA (MKRI) — The Constitutional Court held a preliminary hearing on Thursday, July 31, 2025, for the judicial review of provisions allowing deputy ministers to concurrently serve as commissioners or supervisors in state-owned enterprises (SOEs). The petition, registered as Case No. 118/PUU-XXIII/2025, was filed by legal activists Ilham Fariduz Zaman and A. Fahrur Rozi.

They challenged Article 23 of the Ministry Law and Articles 27B and 56B of the SOE Law, arguing that the absence of a specific prohibition on such dual positions creates a legal loophole vulnerable to abuse and undermines good governance. Rozi explained that their concerns had been previously voiced through articles published on kabarbaru.com and kompas.com in early July 2025.

Ironically, they observed that shortly after these articles were published, the number of deputy ministers holding SOE commissioner posts increased from 25 to 30. Rather than triggering reform, their criticism coincided with the expansion of the practice they were opposing.

The Petitioners also questioned the transparency of the Rp325 trillion allocated to SOEs under the superholding BPI Danantara, which is part of a broader Rp750 trillion budget efficiency program. They argued that the fund is managed by officials with overlapping roles, raising concerns about accountability. Petitioner II, a university student, testified about the tangible effects of these efficiency measures on the education sector, including reduced campus facilities, shortened academic hours, and classroom rental fees.

They asserted that allowing such dual roles creates conflicts of interest, weakens fiscal oversight, and violates citizens’ constitutional rights to a clean and transparent government. Accordingly, they asked the Court to interpret the term “minister” in Article 23 of the Ministry Law to include “deputy minister,” and to declare the relevant SOE Law provisions unconstitutional unless interpreted to prohibit SOE commissioners and supervisors from concurrently holding other strategic posts, including in ministries, political parties, or regional enterprises (BUMD).

The Petitioners also cited the Court’s Decision No. 80/PUU-XVII/2019, which recognized that ministers and deputy ministers form one entity, but noted that the prohibition on dual office has not been implemented for deputy ministers. They added that deputy minister appointments, which are optional under the law, are often politically driven, potentially affecting the integrity of SOE management.

Justice Enny Nurbaningsih advised the Petitioners to reinforce their legal arguments, especially regarding the constitutional grounds for their claims. The Court granted them until Wednesday, August 13, 2025, at 12:00 PM to submit revisions to their petition

Author: Utami Argawati
Editor: Lulu Anjarsari P.
PR: Fauzan Febriyan
Translator: Yuanna Sisilia

Disclaimer: The original version of this news is in Indonesian. In case of any discrepancies, the Indonesian version shall prevail.

 

 

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