Jakarta, MINA – A constitutional law expert and member of the Constitutional and Administrative Law Society (CALS), Herdiansyah Hamzah, also known as Castro, has criticized President Prabowo Subianto’s policy that opens up opportunities for foreign nationals (WNA) to lead State-Owned Enterprises (BUMN).
According to him, the policy demonstrates the government’s failure to understand the meaning of Article 33 of the 1945 Constitution (UUD 1945), which explicitly places the management of national resources in the hands of the Indonesian nation itself.
“If [management] is then handed over to foreign nationals, that philosophy is uprooted from its fundamental concept. This is a form of misunderstanding the status of BUMN as a state-owned company, where full control should be in the hands of the state,” Castro said in Jakarta, Friday.
Castro asserted that Article 33 of the 1945 Constitution is mandatory, meaning the management of resources must be carried out by the state and its own citizens. Therefore, in his view, only Indonesian citizens (WNI) are entitled to hold director or commissioner positions in BUMN.
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“Article 33 is clear, management must be directly by the state through BUMN. So, there’s no need to debate whether foreign nationals can become BUMN leaders or not. It is already firm: only Indonesian citizens are allowed,” he emphasized.
He also assessed that this policy contradicts the spirit of economic independence and sovereignty often conveyed by President Prabowo.
“There is an inconsistency. What was campaigned about economic independence turns out to be just a gimmick,” he stated.
Castro added that Law Number 16 of 2025 concerning BUMN also affirms that BUMN leaders must be Indonesian citizens. Therefore, the policy of opening space for expatriates is considered incompatible with the prevailing legal umbrella.
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Furthermore, Castro believes that the technocratic reasons underlying this policy cannot be justified. He affirmed that Indonesian citizens possess capabilities that are no less competent than foreign nationals in managing state companies.
“Regarding capability, I’m confident we are not inferior. However, this policy seems to open the door for negotiations with foreign parties,” he added.
Previously, President Prabowo Subianto, during a discussion with Forbes Chairman Steve Forbes, in Jakarta, on Wednesday (15/10), stated that the government had changed regulations to allow expatriates to lead BUMN.
“Now, expatriates, non-Indonesians, can lead our BUMN,” Prabowo said.
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Meanwhile, Minister of State Secretary Prasetyo Hadi explained that the rule is already included in the latest BUMN Law. However, he did not elaborate on the specific article that regulates it.[]
Mi’raj News Agency (MINA)
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