Second Reform of SOE's Management This Year: Law Number 16 of 2025 on Fourth Amendment to State-Owned Enterprises Law

Following Law 1/2025, the government promulgated Law 16/2025 on 6 October 2025, marking another milestone in Indonesia's State-Owned Enterprise (SOE) reform. Aimed to optimize SOE management through effective institutional transformation and a business-oriented paradigm, Law 16/2025 establishes BP BUMN as the new regulatory and supervisory body replacing the Ministry of SOEs, enhances BPI Danantara’s role in managing SOEs, and restructures the state’s shareholdings in SOEs and holdings under BPI Danantara. However, several provisions still require further clarification and implementing regulations to ensure effective execution. Find out more our insights about this topic in our Legal Brief publication.

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