What Are the Key Governance Requirements Under PP 10/2025?
1.0 Regulatory Foundation
PP 10/2025, enacted in 2025, governs the organization and governance of Badan Pengelola Investasi Daya Anagata Nusantara (the Agency), a key entity managing state-owned enterprises (BUMN). This regulation aligns with Indonesia’s broader BUMN reform agenda under Law No. 19/2020 on BUMN.
Pasal 1 Definitions
Key terms include:
1. BUMN: State-owned enterprises with majority state capital or special rights.
2. Menteri: The Minister overseeing BUMN affairs.
3. Badan: The Agency executing BUMN management tasks.
4. Badan Pelaksana: The Agency’s operational unit.
5. Dewan Pengawas: The supervisory board overseeing operations.
6. Perusahaan Induk Investasi/Operasional: Holding companies for investment/operational oversight.
| No. | Term | Indonesian Term | Definition | Article Reference |
|---|---|---|---|---|
| 1 | BUMN | Badan Usaha Milik Negara | State-owned enterprise with majority state capital or special rights. | Pasal 1(1) |
| 2 | Badan Pelaksana | Badan Pelaksana | Operational unit managing the Agency’s day-to-day activities. | Pasal 1(4) |
| 3 | Perusahaan Induk | Holdir Investasi/Operasional | Holding companies for investment/operational oversight of BUMN. | Pasal 1(6) |
2.0 Core Framework
Governance Structure
The regulation establishes a four-tier governance model:
- Badan Pelaksana: Manages operations (Pasal 1(4)).
- Dewan Pengawas: Oversees compliance (Pasal 1(5)).
- Dewan Penasihat: Advisory body appointed by the President (Pasal 23).
- Komite Pemantau: Oversight committee for accountability (Pasal 24).
| Governance Organ | Role | Legal Basis |
|---|---|---|
| Dewan Penasihat | Provides strategic advice to the Agency. | Pasal 23 |
| Komite Pemantau | Monitors organizational accountability. | Pasal 24 |
| Badan Pelaksana | Implements operational policies. | Pasal 1(4) |
Good Governance Mandate
Pasal 25(1): “Badan Pelaksana harus memastikan pelaksanaan tata kelola perusahaan yang baik” (“Badan Pelaksana must ensure the implementation of good corporate governance”).
This requires adherence to principles of transparency, accountability, and fairness, with detailed rules issued by the Head of Badan Pelaksana.
3.0 Implementation Requirements
Compliance Tools
- Board Manual: Dewan Pengawas and Badan Pelaksana must draft a governance charter (Pasal 26).
- Conflict of Interest Rules: Officials must disclose personal interests (Pasal 27(1)).
| Task | Responsible Party | Legal Basis |
|---|---|---|
| Draft Board Manual | Dewan Pengawas & Badan Pelaksana | Pasal 26 |
| Establish Oversight Committee | President | Pasal 24 |
4.0 Enforcement & Sanctions
Termination of Officials
Pasal 31(2): Dewan Pengawas members may be dismissed for ethics breaches, negligence, or criminal acts.
Sanctions include removal by the President and potential liability for financial losses (Pasal 31(2)(d)).
| Violation | Sanction | Legal Basis |
|---|---|---|
| Ethics violations | Dismissal by President | Pasal 31(2)(c) |
| Criminal acts | Termination | Pasal 31(2)(d) |
5.0 Implications & Outlook
PP 10/2025 centralizes BUMN oversight, strengthens anti-corruption safeguards, and institutionalizes accountability mechanisms. Key compliance takeaways:
1. Governance Manuals: Mandatory for all BUMN entities.
2. Conflict of Interest: Strict disclosure rules for officials.
3. Presidential Oversight: Direct appointment/dismissal powers over key committees.
Official Source
Full regulation text: https://peraturan.bpk.go.id/
Citation: Government Regulation No. 10/2025 on the Organization and Governance of the Investment Management Agency for Future Daya Nusantara.
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