West Java Regional Council Reviews Formation of BUMD Holding via PT Sangga Buana
The Regional Regulation Formation Body (Bapemperda) of the West Java DPRD is reviewing the plan to form a regional-owned enterprise (BUMD) holding company through PT Sangga Buana. This move is intended to strengthen synergy, improve management efficiency, and bolster the competitiveness of regional companies.
The Deputy Chairman of Bapemperda West Java, Daddy Rohanady, stated in a briefing in Bandung on Sunday that the study is being conducted comprehensively, considering legal aspects, business models, and regional fiscal conditions as the basis for drafting the holding company’s regulations.
“BUMDs must not treat the Regional Budget (APBD) as an ‘ATM’. On the contrary, BUMDs must be able to stand independently, be managed with good corporate governance principles, and provide real contributions through dividends that impact the increase of Regional Original Income (PAD),” he said. He added that BUMDs must be managed professionally and should not rely on the Regional Budget, but rather contribute significantly to the increase of PAD.
He noted that the council is also studying the management of BUMDs in Jakarta as a reference for drafting policies and regulations to strengthen the role of regional companies in West Java. “We want to learn how BUMDs in Jakarta are managed professionally to produce dividends that serve as a source of regional income. That experience serves as an important reference for the West Java DPRD in formulating policies and regulations,” he added.
Previously, the West Java Provincial Government set a target for the official establishment of the BUMD holding, Sanggabuana Holding, by August 2026 at the latest, to consolidate assets and strengthen the regional investment structure.
The West Java Regional Secretary, Herman Suryatman, stated that the formation of the holding company has undergone a feasibility study alongside an expert team from the Burhanuddin Abdullah Center (BA Center) and has been declared feasible by the Ministry of Home Affairs.
“The results of the study declare it feasible to be formed,” said Herman. However, he emphasised that Bank Pembangunan Daerah Jawa Barat dan Banten (Bank BJB) will not be merged into Sanggabuana Holding. Through the studies conducted by Bapemperda and the formation process by the West Java Provincial Government, it is hoped that BUMD management will become more professional, efficient, and capable of increasing contributions to PAD through the optimisation of regional company performance.