JAKARTA - Indonesian President Prabowo Subianto has made significant strides toward enhancing the nation's fiscal and social infrastructure with the signing of Law No. 1 Year 2025, aimed at restructuring the State-Owned Enterprises (BUMN). This monumental announcement took place at the Istana Merdeka on February 24, 2025, after thorough legislative reviews, thereby setting the stage for substantial reforms.
Together with the law’s signing, President Prabowo also enacted Government Regulation No. 10 Year 2025, which outlines the organization and governance structures of the newly established Investment Management Body, Danantara. The formal launch of Danantara Indonesia occurred shortly after, marking another milestone for the government. This event saw attendance from notable figures, including former presidents, ministers, and influential business leaders, underscoring the importance of this initiative.
During the launch, Prabowo stated, “Daya Anagata Nusantara, which means energy, strength of the future for the Archipelago, strength of future energy for Indonesia.” His remarks highlight the government's ambition to channel investments effectively and support the nation's economic development.
Prior to these events, on February 4, 2025, the Indonesian Parliament approved amendments to the BUMN Law, paving the way for the subsequent legal reforms. Minister of State-Owned Enterprises, Erick Thohir, elaborated on the law’s four primary objectives, emphasizing the establishment of Danantara. “Danantara is officially established for the consolidation of SOEs management and optimization of dividends and investments,” Thohir explained, pointing to the necessity of creating more efficient management systems within public enterprises.
One of the law's highlights is its commitment to endorsing good corporate governance principles, which are aimed at increasing accountability within state enterprises. This initiative resonates well with the contemporary demand for transparency and efficiency, reflecting the government's intention to align with international standards.
Erick Thohir's remarks also underscored the law's focus on enhancing human resources within SOEs, particularly advocating for opportunities for individuals with disabilities and the local populace. He stressed, “Female workers will be provided opportunities to hold directorial posts, board commissioner roles, or other strategic positions within SOEs.” This commitment to inclusivity is part of broader efforts to build diverse leadership structures within Indonesian state enterprises.
Another pivotal aspect of the legal overhaul pertains to the status of state-owned wealth, reaffirming its nature as state property to facilitate corporate actions without bureaucratic hindrance. This change aims to inspire increased flexibility and responsiveness among SOEs, thereby supporting growth targets as outlined by President Prabowo.
Simultaneously, local governance is witnessing encouraging changes, highlighted by recent developments within the village of Selange. On February 26, 2025, local officials adopted regulations focused on improving maternal and child health services. During the ceremony at the Selange Village Office, community leaders, including Elly Kornelia, the district head of Meranti, emphasized the importance of these regulations in fostering community accountability and responsiveness to public health needs.
This initiative aims to create high-quality healthcare services and address stunting among children, thereby enhancing the overall health and well-being of the community. The local police chief, Ipda Uwes, reiterated the importance of community support for the newly instituted health regulations, stating, “We need everyone to comply with and support the regulations established today, particularly concerning food security programs related to nutritious food initiatives.”
The combined efforts from both the central and local governments reflect Indonesia's proactive approach to governance reforms and social welfare improvements. While new laws and regulations emerge, they indicate significant shifts toward greater accountability, inclusivity, and strategic community engagement.
Looking forward, these updates herald positive shifts for Indonesia as it strives for improved governance and enhanced public services. This comprehensive approach is pivotal for achieving sustainable growth and meeting the diverse needs of its citizens.