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

Abstract

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.