Constitutionality Holding Sub Holding SOEs in the Field of Electricity Supply Business

This research discusses the limitations on the privatization of State- Owned Enterprises (BUMN) in the field of electricity supply and its correlation with the implementation of the sub holding structure in PT PLN (Persero). This discussion is crucial, given that electricity is a vital sector of pr...

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Main Author: Mohammad Fandrian Adhistianto
Format: Article
Language:English
Published: The Registrar and Secretariat General of the Constitutional Court of the Republic of Indonesia 2023-12-01
Series:Jurnal Konstitusi
Subjects:
Online Access:https://jurnalkonstitusi.mkri.id/index.php/jk/article/view/2174
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author Mohammad Fandrian Adhistianto
author_facet Mohammad Fandrian Adhistianto
author_sort Mohammad Fandrian Adhistianto
collection DOAJ
description This research discusses the limitations on the privatization of State- Owned Enterprises (BUMN) in the field of electricity supply and its correlation with the implementation of the sub holding structure in PT PLN (Persero). This discussion is crucial, given that electricity is a vital sector of production for the nation and profoundly impacts the well-being of the general populace, necessitating state control. The study adopts a normative legal research approach, employing conceptual frameworks and secondary data. The research’s conclusion is that the constitution restricts the privatization of State-Owned Enterprises in the electricity supply sector, emphasizing that only State-Owned Enterprises are authorized to manage electricity-related businesses. National or foreign private companies are only permitted to participate if invited to collaborate by State-Owned Enterprises. The implementation of the sub holding structure in PT PLN (Persero), utilizing the shareholder scheme involving Geothermal Co and New Energy Co as subsidiaries, contradicts the 1945 Constitution because it leads to an escape from state control.
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spelling doaj.art-04c9367707d743f29cf55cd71457d16e2023-12-14T01:14:43ZengThe Registrar and Secretariat General of the Constitutional Court of the Republic of IndonesiaJurnal Konstitusi1829-77062548-16572023-12-0120410.31078/jk2046Constitutionality Holding Sub Holding SOEs in the Field of Electricity Supply BusinessMohammad Fandrian Adhistianto0https://orcid.org/0009-0009-5537-5188Faculty of Law, Pamulang University, South Tangerang, Indonesia This research discusses the limitations on the privatization of State- Owned Enterprises (BUMN) in the field of electricity supply and its correlation with the implementation of the sub holding structure in PT PLN (Persero). This discussion is crucial, given that electricity is a vital sector of production for the nation and profoundly impacts the well-being of the general populace, necessitating state control. The study adopts a normative legal research approach, employing conceptual frameworks and secondary data. The research’s conclusion is that the constitution restricts the privatization of State-Owned Enterprises in the electricity supply sector, emphasizing that only State-Owned Enterprises are authorized to manage electricity-related businesses. National or foreign private companies are only permitted to participate if invited to collaborate by State-Owned Enterprises. The implementation of the sub holding structure in PT PLN (Persero), utilizing the shareholder scheme involving Geothermal Co and New Energy Co as subsidiaries, contradicts the 1945 Constitution because it leads to an escape from state control. https://jurnalkonstitusi.mkri.id/index.php/jk/article/view/2174ElectricityPrivatizingSOEs
spellingShingle Mohammad Fandrian Adhistianto
Constitutionality Holding Sub Holding SOEs in the Field of Electricity Supply Business
Jurnal Konstitusi
Electricity
Privatizing
SOEs
title Constitutionality Holding Sub Holding SOEs in the Field of Electricity Supply Business
title_full Constitutionality Holding Sub Holding SOEs in the Field of Electricity Supply Business
title_fullStr Constitutionality Holding Sub Holding SOEs in the Field of Electricity Supply Business
title_full_unstemmed Constitutionality Holding Sub Holding SOEs in the Field of Electricity Supply Business
title_short Constitutionality Holding Sub Holding SOEs in the Field of Electricity Supply Business
title_sort constitutionality holding sub holding soes in the field of electricity supply business
topic Electricity
Privatizing
SOEs
url https://jurnalkonstitusi.mkri.id/index.php/jk/article/view/2174
work_keys_str_mv AT mohammadfandrianadhistianto constitutionalityholdingsubholdingsoesinthefieldofelectricitysupplybusiness