New BUMN Restructuring and Privatization Framework in the Pipeline: Spin-off Procedures, Revised Approval Pathways and New Privatization Rules Incoming

The government is currently completing work on a new Draft Regulation of the Government (“Draft Regulation”) on the Restructuring and Privatization of State-Owned Enterprises (Badan Usaha Milik Negara – “BUMN”). If this framework is ultimately enforced, then it will simultaneously repeal and replace the following regulatory frameworks:[1]

1. Regulation of the Government No. 33 of 2005 on Procedures for the Privatization of State-Owned Limited-Liability Companies (Perusahaan Perseroan – “Persero”),[2] as amended by Regulation of the Government No. 59 of 2009 (collectively referred to as “Regulation 33/2005”); and
2. Regulation of the Government No. 43 of 2005 on the Merger, Consolidation, Acquisition and Changing of the Legal Entity Form of State-Owned Enterprises (“Regulation 43/2005”).