Jakarta. The government and parliament have agreed to dissolve the State-Owned Enterprises (SOEs) Ministry, a landmark restructuring that shifts control of state assets to the sovereign wealth fund Danantara and a newly created regulator. 

The move follows President Prabowo’s decision to reassign former SOEs Minister Erick Thohir to the Youth and Sports Ministry, leaving the portfolio vacant. Deputy Minister Donny Oskaria, who also serves as chief operating officer of Danantara, has been appointed acting head of the SOEs Ministry.

Lawmakers on Friday approved revisions to the 2003 SOEs Law that would replace the ministry with the State-Owned Enterprises Regulatory Agency (BPBUMN). The agency will act as a regulator and retain the state’s golden share --a 1 percent Class A stake-- in each enterprise. The remaining 99 percent of government-held shares will be transferred to Danantara, which will serve as the operator. 

This “golden share” grants the government special veto rights, including the authority to approve changes to the company’s articles of association, mergers, acquisitions, liquidation, or decisions that affect national interest.

“The SOEs Ministry will be abolished and replaced with BPBUMN. Its functions will be regulatory, while Danantara takes over the operational role,” Justice Minister Supratman Andi Agtas told reporters after a parliamentary session in Jakarta.

While BPBUMN will formally manage the Class A shares on behalf of the state, all operational revenues and dividend policies will be consolidated under Danantara. 

House Deputy Speaker Sufmi Dasco Ahmad said the ministry’s functions have largely been absorbed by Danantara, Indonesia’s sovereign wealth fund.

“With Danantara in place, the role of the SOEs Ministry is now mainly that of a regulator and holder of Class A shares in SOEs,” Dasco explained.

SOEs account for nearly 20 percent of the Jakarta exchange by market capitalization, spanning banks, miners, and utilities. Following the announcement, state-owned stocks closed mixed on Friday: BRI slipped 0.74 percent, Bank Mandiri rose 1.38 percent, BNI edged down 0.24 percent, and BBTN gained nearly 2 percent. State miner Aneka Tambang advanced 1.26 percent, while cement maker Semen Indonesia fell 0.7 percent.