Business Enterprises

State Limited Liability Company (Persero)Regional Owned Enterprises ( PD )

Brian Anputra 000-0000-8890Isabella Permatasari 000-0000-8052Park Jong Sun 000-0000-9660Richardson Tjongirin 000-0001-0734

Persero (State LLC)

Persero is a State Limited Liability Company It means either the company is owned wholly / majority (at least 51% of the stock) by the government.

The government takes control of the state corporations under one single ministry, the Ministry of State Enterprises, which acts like the CEO of a holding company.

In article :book one article 15-36 KUHDagang/commercial code

Indonesia’s 1945 constitution article 33:3”Soil and water and natural wealth contained therein shall be controlled by the state and used for the welfare of the people to the utmost. “

Examples :PT.Bank Mandiri (persero) Tbk. PT.Garuda Airways GIA (persero),PT Angkasa Pura (Persero), PT. Pos Indonesia (persero), PT.Kimia Farma (persero)

1. The main objective is profit ( Commercial )2. Capital is partly or entirely derived from the wealth of a

country that offered the stocks3. run by director, rups is the highest entity 4. Employee status is private employees5. The business entity is written as PT (name of company)

(Limited)6. Do not receive State facilities7. Consists of : RUPS, board of directors, board of commisioners

CHARACTERISTICS OFPERSERO

PERSERO

ADVANTAGES Profit oriented. provide very essential

services to the people at cheaper and affordable rates (Ex-electricity and water are some of the essential services)

Protect the consumers from being exploited by private enterprises by offering them a cheaper and better alternative.

Help the government to control certain strategic sectors of the economy.

DISADVANTAGES Cost a lot of money

to build The employees are

private employees Hard to increase their

capital Has to pay a lot of fees

and government regulation such as annual fees

RULES AND REGULATIONS TO BUILD PERSERO

Articles 11 UU BUMN, which stated that the rules

and regulations for persero has the same principals

with PT as how it is also ruled in UU No.1 thn 1995

which later replaced to UU No. 40 thn 2007.

Articles 7(7) UU PT, stated that persero should be

build by at least 2 people, but it doesn’t apply if the

state own the whole share, it also doesn’t apply for

those who runs the Stock exchange, and etc (ruled in

UU Pasar Modal).

Regionally Owned Enterprises (Perusahaan Daerah )

Business enterprises that is owned and build by regional government to improve that region’s economy.

KUHD article 95-96

8

CHARACTERISTICS

Local government is stated as stockholder in a company.

Local government has the power and authority in controlling the company.

Ruled by local regulationThe purpose is to fund the region’s economic

activities.

Regional Owned Enterprises

ADVANTAGES All the profits are

meant to be used by specific region.

An opportunity to creates a prosperous region.

Creates an easy access to regional citizen.

DISADVANTAGES Hard to economically

maintained. Most of the rules and

regulations might slow down the growth of enterprises.

The management of enterprises also affected by the region’s economic capability.

RULES AND REGULATIONS TO BUILD PERUSAHAN DAERAH

Rule 41 ayat 5 UU 1/2004 stated that the capital of the Regionally owned enterprise / perusahan daerah is to be established according to the regulation on that specific area

The local government should be responsible to manage and to create the entreprise by themselves with the aim of a better wealthcare of the people

The development of the enterprise should be equal to undang undang no 22 tahun 1999