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.

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).

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)).

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)).

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.

Disclaimer

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Law Database

Access PP 10/2025 in the CRPG Law Database: PP 10/2025