ABSTRACT
Indonesia’s 118 state-owned enterprises (SOEs) are important pillars of its economy. They operate in almost all sectors/industries, including banking, tourism, agriculture, forestry, mining, construction fishing, energy, and telecommunications. There is a need to develop a comprehensive understanding of the current legal landscape that regulates SOEs in the country and how it possibly responds to the Trans-Pacific Partnership agreement. State-owned enterprises in Indonesia have long enjoyed various privileges under a nationalistic economic policy. In the context of financial management, the Decree defined a Perjan as one whose operational costs are funded from the national budget. Meanwhile, Perum and Persero are state companies whose budgets are separate from the state budget. Foreign companies carrying out the works must collaborate with local firms via partnerships, subcontracting, and other forms if there are local companies that meet the required capabilities in the relevant field.
