West Java Bapemperda Urges Regional-Owned Enterprises to Drive Local Revenue
The Regional Regulation Formation Agency (Bapemperda) of the West Java Regional People’s Representative Council (DPRD) is studying the governance of Regional-Owned Enterprises (BUMD) in DKI Jakarta as a reference for improving BUMD management in West Java. This move is expected to encourage regional companies to become healthier, more professional, and contribute more significantly to the Locally-Generated Revenue (PAD).
Deputy Chairman of the West Java DPRD Bapemperda, Daddy Rohanady, stated that the working visit to the DKI Jakarta DPRD aimed to study best practices in BUMD management, which is considered successful in generating dividends and serving as a source of regional income. “We want to see to what extent BUMDs in DKI Jakarta are managed ideally so that they produce dividends and become a source of regional income,” Daddy said during the working visit on Wednesday (22/7/2026).
He added that in West Java, the number of BUMDs has been reduced from 41 to 37 following a process of reduction and diffusion. However, their current condition is not yet fully healthy. According to Daddy, the results of the comparative study will serve as input for the DPRD and the West Java Provincial Government in strengthening BUMD governance.
One of the agendas discussed was the plan to establish a BUMD holding company named PT Sangga Buana, which has obtained a principle licence from the Ministry of Home Affairs. PT Sangga Buana is projected to become a parent company that integrates the management of BUMDs in West Java to make them more effective, professional, and competitive. Through this scheme, the government hopes that the performance of regional companies will improve while contributing more significantly to the PAD.
To strengthen the study, Bapemperda also plans to consult with the Burhanuddin Abdullah Centre (BA Centre), which drafted the business concept for PT Sangga Buana. The discussions will cover the business model, implementation stages, and capital injection requirements from the West Java Provincial Government.
While supporting efforts to reform BUMDs, Daddy cautioned that the formation of the holding company must be carried out carefully given the region’s fiscal challenges. He stressed that the entire process must be based on a comprehensive study and implemented transparently and accountably. “BUMDs must not treat the Regional Budget (APBD) as an ATM. On the contrary, BUMDs must be self-sufficient, professionally managed, and provide real contributions to the region through dividends that increase Locally-Generated Revenue,” he said.
Daddy added that the DPRD will exercise its legislative and supervisory functions from the regulatory discussion stage in Bapemperda through to the Special Committee (Pansus) stage. This is to ensure that the establishment of the BUMD holding truly benefits the community and strengthens West Java’s fiscal independence.