Acceleration of SOE Reforms Faces Legal Risks as Challenge
JAKARTA - Major changes within Indonesia’s State-Owned Enterprises (SOEs) are now progressing more rapidly, driven by a massive push for business transformation. However, this acceleration is accompanied by new challenges, namely the increasing legal risks amid the enforcement of the new Criminal Code (KUHP) and Criminal Procedure Code (KUHAP) starting from 2 January 2026.
The transformation, which includes restructuring, mergers and acquisitions, divestments, and the closure of subsidiaries, requires decision-makers in SOEs to ensure every step remains within strict legal boundaries. The need for clear governance and risk mitigation has thus become even more pressing.
This was stated by Director of Transformation and Business Sustainability at PT Pertamina (Persero), Agung Wicaksono, during a seminar at the Financial Hall of CIMB Niaga, Jakarta, on Tuesday (14/4/2026).
“In the midst of accelerating SOE transformation, every corporate action must move quickly while remaining accountable and compliant with legal corridors,” said Agung in a press statement on Thursday (16/4/2026).
“The new KUHP and KUHAP demand that we strengthen governance, clarify decision-making, and ensure every business step provides sustainable added value, not only for the company but also for the state,” he continued.
Director of Strategic Business Development and Portfolio at PT Telkom Indonesia, Seno Soemadji, emphasised that portfolio simplification cannot be viewed solely from a business perspective.
“Streamlining is not just about tidying up the portfolio, but building a more focused, agile, and valuable corporate foundation,” said Seno.
“For SOEs, the challenge is to maintain a balance between efficiency, synergy, and legal prudence, so that business transformation can proceed faster without sacrificing governance integrity,” he added.
This situation indicates that the acceleration of business transformation demands the companies’ ability to read and manage increasingly complex legal risks.
General Chairman of ILUNI UI and Managing Partner of UMBRA, Pramudya A. Oktavinanda, views this momentum as an opportunity to clarify management responsibilities while strengthening legal protections for corporate officers.
“The SOE transformation momentum needs to be seen as an opportunity to strengthen governance, clarify management responsibility boundaries, and build healthy legal protections for corporate officers,” he said.
“Under the new legal regime, the business judgment rule, compliance, risk mitigation, and independent business decision-making must form a unified whole in every strategic decision,” he continued.
Through this forum organised by the University of Indonesia Alumni Association (ILUNI UI) together with the Bandung Institute of Technology Alumni Association (IA ITB), stakeholders are encouraged to increase legal awareness among SOE leaders. This is deemed important so that business transformation continues rapidly without neglecting aspects of prudence.