Bill on Fourth Amendment to BUMN Law: Ministry Converted to Regulatory Agency, Concurrent Position Ban Clarified

Earlier in 2025, Indonesia’s House of Representatives (Dewan Perwakilan Rakyat– “ DPR ”) officially promulgated Law No. 1 of 2025 on the Third Amendment to Law No. 19 of 2003 on State-Owned Enterprises (Badan Usaha Milik Negara – “ BUMN ”) (collectively referred to as “ Law 19/2003 ”). [1] Broadly speaking, this latest amendment to Law 19/2003 introduces the Investment Management Agency (Badan Pengelola Investasi) of Daya Anagata Nusantara (“ BPI Danantara ”), as well as BUMN Investment and Operational Holdings (collectively referred to as “ Holdings ”). Furthermore, this new framework has also expanded the Business Judgment Rule (“ BJR ”) doctrine for members of the Boards of Directors (“ BoD ”) and Boards of Commissioners (“ BoC ”) of BUMN.