Govt. Regulates Specific KPI for BoD of BUMN

In order to renew provisions originally set out under Decree of Minister of State-Owned Enterprises (“ Minister ”) No. KEP-59/MBU/2004 (“ Decree 59/2004 ”), which is now considered outdated, the Minister recently issued Regulation No. PER-11/MBU/11/2020 on Management Contracts and Annual Management Contracts for Boards of Directors of State-Owned Enterprises (“ Regulation 11/2020 ”), which is aiming to improve the commitments of the Boards of Directors (Direksi- “ BoD ”) serving within State-Owned Enterprises (Badan Usaha Milik Negara– “ BUMN ”) in an effort to establish a more competitive and productive investment climate. [1] The issuance of Regulation 11/2020 means that Decree 59/2004 has now been repealed and replaced. [2]