State-owned Enterprise of Indonesia

State-owned enterprises of Indonesia, locally known as Badan Usaha Milik Negara (BUMN) play an important role in the national economy. Their roles includes contributor for national economy growth, providing goods or services which are not covered by private company, employment provider, providing support guidance to small and medium businessess, and source of government revenue .^[1]
The government takes control of the BUMN under one single ministry, the Ministry of State Owned Enterprises, which acts like the CEO of a holding company.

Aside from BUMN, there are also local government (Province and City/Regency level)-owned enterprises, locally known as Badan Usaha Milik Daerah (BUMD). The primary difference between BUMN and BUMD is the ownership of the enterprise, whereas BUMN is controlled by Ministry of State Owned Enterprise while BUMD is directly controlled by local government. BUMD roles are similar with BUMN, with heavy emphasis on providing goods or services to the local community.

Type of BUMN

In law, there are three types of state-owned enterprise (SOE) in Indonesia:

• Perusahaan Jawatan (Perjan) which have operational costs funded from the national budget. Employees of these SOEs are civil servants and the companies are regarded as government agencies. This type of SOE is no longer exists. Firms in this category have been either upgraded into other types of SOEs or have become a government agency.

• Perusahaan Umum (Perum) or public service company wholly owned by government. The main purpose of these SOEs is to provide goods and/or services to public. These firms are allowed to pursue profits.

• Perusahaan Perseroan are SOEs which are Perseroan Terbatas (PT) or a limited liability company. This type of SOE is more independent than the Perums and the main goals of these firms are to generate profits and contribute to government revenue. This type of SOE is easy to recognize because they have the term Persero attached to their names. (Exceptions are PT Pertamina and PT Telekomunikasi Indonesia Tbk.)
  There are two sub-type of Perusahaan Perseroan:

1. Perusahaan Perseroan Terbuka, or Public Company, which are enterprises whose ownership belongs both to the government and to the general public which issue freely traded shares the stock exchange (or in over the counter markets). This subtype of SOE also has the suffix Tbk attached to their names.
2. Perusahaan Perseroan Pemerintah which are enterprises whose ownership are 100% government-held.

Companies

Information on the state-owned enterprises (SOEs) is drawn from the Ministry of State Owned Enterprises portal,^[2] unless otherwise stated.

The largest and most well-known SOEs include the following.

There are numerous other SOEs including the following:

References

External links