New state-owned enterprise to manage state-seized land, Palace explains reasons

New state-owned enterprise to manage state-seized land, Palace explains reasons
  Minister of State Secretary (Mensesneg) Prasetyo Hadi explained the reasons for establishing new state-owned enterprises (BUMN) to manage state-owned mining and palm oil plantations that were confiscated from a number of private companies by the Forest Area Regulation Task Force and have been returned to the state.

According to Pras, this does not need to be questioned, because there is nothing wrong with state-owned companies conducting business in sectors that are also engaged in by private companies.

"Well, where's the mistake? It's the same. In many economic activities, the state or government, represented by institutions, in this case, state-owned enterprises , also enters the private sector. No , there's no problem. We're all moving forward side by side. So, don't think of them as contradictory," said Prasetyo Hadi, answering reporters' questions after the launch of the economic stimulus for the first quarter of 2026 at Gambir Station, Jakarta, on Tuesday.

Pras continued, emphasizing that each business actor, both state-owned enterprises and the private sector, has a distinct role to play. The government is committed to supporting both the private sector and state-owned enterprises.

"We must encourage and facilitate the private sector, prepare the necessary regulations, and even help simplify them. However, the state, in this case state-owned enterprises, may also operate in areas that have traditionally been the domain of economic activity for our friends in the private sector. This is not something to be disputed," said State Secretary Prasetyo Hadi, who is also the Indonesian Presidential Spokesperson.

Several parties have questioned the government's policy of transferring management of state assets to new state-owned enterprises (SOEs). These assets were previously confiscated by the state through the Forest Area Control Task Force (Satgas PKH) from private companies believed to have violated regulations.

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