New BP BUMN Rules Shield Directors from Liability for Cut-Loss Decisions on State-Owned Enterprise Assets

The State-Owned Enterprises Regulatory Agency (Badan Pengaturan Badan Usaha Milik Negara – “BP BUMN”) has issued Regulation No. 1 of 2026 on the Write-Off and Collection Waiver of State-Owned Enterprise Assets (“Regulation 1/2026”).

Upon entering into force, Regulation 1/2026 repealed Articles 162 to 197 of Regulation of the Minister of State-Owned Enterprises (“Minister”) No. PER-2/MBU/03/2023 on Guidelines for the Governance and Significant Corporate Activities of State-Owned Enterprises (“Regulation 2/2023”). Those articles governed the write-off and transfer of fixed assets of state-owned enterprises (Badan Usaha Milik Negara – “BUMN”).[1]