General Corporate

1. Regulation of the Government No. 38 of 2026 on Management of State-Owned Enterprises

Enforcement Date: 21 August 2026

Summary:

• This Regulation establishes a distinct division of State-Owned Enterprises (Badan Usaha Milik Negara – “BUMN”) management functions between BUMN Regulatory Agency (Badan Pengaturan BUMN – “BP BUMN”) and the Daya Anagata Nusantara Investment Management Agency (Badan Pengelola Investasi Daya Anagata Nusantara – “BPI Danantara”). BPI Danantara is responsible for managing Persero and may establish the Investment Holding and Operational Holding, while BP BUMN represents the Central Government and manages Perum.
• This Regulation maintains the State’s ownership of the Series A Dwiwarna Share and its special rights, including rights to approve matters and propose agendas at the General Meeting of Shareholders (Rapat Umum Pemegang Saham – “RUPS”), access company information, and appoint and dismiss the Board of Directors and Board of Commissioners with the President’s approval. It also introduces a cut-loss mechanism for certain BUMN assets and provides protection from personal liability for directors who meet the applicable requirements.
• This Regulation requires Persero directors to prepare the Long-Term Plan (Rencana Jangka Panjang – “RJP”), Work Plan and Corporate Budget (Rencana Kerja dan Anggaran Perusahaan – “RKAP”), and annual management contract in accordance with the BUMN roadmap, general policy direction, and shareholder aspirations. BUMN-related disputes must also first undergo deliberation and mediation before the parties may pursue arbitration or court litigation.
• For more information, see ILB No. 5611.