Risk-Management Governance for State-Owned Enterprises: Integrated and Standardized

The Minister of State-Owned Enterprises (“Minister”) has issued Regulation No. PER-5/MBU/09/2022 on the Implementation of Risk Management by State-Owned Enterprises (“Regulation 5/2022”) in an attempt to put in place a standardized and integrated risk management governance framework for state-owned enterprises (badan usaha milik negara – “BUMN”).[1] Prior to the issuance of this regulation, matters relating to BUMN risk management were set out under a number of separate regulations. It should be noted that these regulations will remain applicable provided that they do not contravene any of the provisions that have now been introduced under Regulation 5/2022.[2]