RRI.CO.ID, Jakarta - The government is accelerating reforms of regional-owned enterprises (BUMD) to strengthen governance and reduce bureaucratic inefficiencies that have long burdened their performance.

Deputy Minister of Home Affairs, Bima Arya Sugiarto, said that while BUMDs hold significant potential, their overall health remains far from optimal. “BUMDs are both assets and sources of the biggest problems in this republic. With substantial assets, they should be healthier and more productive,” he said.

Bima made the remarks during Commission II of the House of Representatives’ (DPR RI) visit to regional-owned PT Bank Sumut, which highlighted the current state of BUMD management in the regions.

Data from the Financial and Development Supervisory Agency (BPKP) shows that most BUMDs in the drinking water and business sectors are not yet healthy. Of the total, 21.1 percent are classified as unhealthy, 36.8 percent as less healthy, and only 42 percent as healthy.

To address these challenges, the government and the DPR are drafting a bill to manage BUMDs. The regulation is expected to provide a stronger foundation for governance and improve enterprise performance.

One key provision is the separation of financial performance indicators from public service indicators, which have previously been intertwined and complicated evaluation processes.

The government is also encouraging regional administrations to separate their roles as regulators and capital owners. This step is considered crucial to preventing conflicts of interest and enhancing professionalism in management.

In addition, flexibility in asset management and access to capital will be provided to enable BUMDs to expand their businesses more effectively. These reforms aim to strengthen regional governance and ensure transparent, accountable financial management at the local level. (Misni Parjiati/Lasti Martina)