Draft Bill Establishes Regionally Owned Enterprises as Financing Agencies

The Draft Bill on Regionally-Owned Enterprises (“BUMD”) will form the basis for Daya Anagata Nusantara (“Danantara”) in each region. This regulation will facilitate the consolidation of BUMD between provinces and cities.

“In BUMN, there is Danantara, so BUMD can also do this to provide financing for various national strategic projects in the regions, as well as various regional strategic projects that do not need to be fully funded by the state budget (APBN),” said the Chairman of Commission II of the House of Representatives (“DPR”), Rifqinizamy Karsayuda.

Deputy Chairman of the DPR's Legislation Body (Baleg), Ahmad Doli Kurnia, said the purpose of the regulation is to upgrade BUMDs. The BUMD Draft Bill is included in the 2025 National Legislation Program (Prolegnas) Priority List.

“The point is to empower BUMDs to support the regional economy,” said Doli.