Overview

First introduced back in 2003, Law  No. 19 of 2003 on State-Owned Enterprises (Badan Usaha Milik Negara – “BUMN”), which was subsequently amended by Regulation of the Government in Lieu of Law No. 2 of 2022 on Job Creation (collectively referred to as the “Law 19/2003”), provides a comprehensive framework that governs the formation and operation of BUMN and their subsidiaries (“Subsidiaries”). Among the various aspects that are specifically addressed under Law 19/2003 are capital structure, permissible business entity types and various mechanisms relating to corporate restructuring and privatization.