The Constitutional Court of the Republic of Indonesia (Mahkamah Konstitusi/MK) recently issued an important ruling on the judicial review of the Ministry Law, which explicitly reaffirms the prohibition against deputy ministers serving concurrently as commissioners in State-Owned Enterprises (SOEs). The decision was welcomed by a Constitutional Law expert from the Faculty of Law at Universitas Gadjah Mada (FH UGM), Dr. Yance Arizona, as it strengthens the principle of professionalism and prevents potential conflicts of interest in governance.
According to Dr. Arizona, debates have long arisen within the government because previous MK rulings were seen as unclear and not explicit regarding the issue of holding multiple positions.
He considers this latest decision a positive step, as the Court now explicitly reinforces the prohibition on deputy ministers serving as SOE commissioners simultaneously.
Furthermore, Dr. Arizona explained that the ruling carries two key messages.
First, it aims to prevent conflicts of interest, as deputy ministers function both as government regulators and as operators when serving as commissioners in SOEs.
“The potential for conflicts of interest is very high, particularly when a deputy minister holds a commissioner position in an SOE that falls within the scope of their ministry’s work,” he said on Tuesday, Aug. 9, 2025.
Second, the Court’s ruling emphasizes that the prohibition is meant to ensure professionalism, both in the role of deputy minister and as SOE commissioner.
With a clear separation of duties, deputy ministers can focus on their ministerial responsibilities, while commissioner roles are filled by individuals dedicated solely to overseeing SOEs.
“From the perspective of Constitutional Law, this separation is also positive in terms of improving the effectiveness of ministerial work,” he explained.
Nevertheless, MK has allowed a two-year transition or grace period for adjustments.
Dr. Arizona argued that this timeframe should be interpreted as a deadline, not as tolerance for deputy ministers to retain dual positions until the period ends.
“Once the ruling is issued, deputy ministers should immediately resign from commissioner roles. If not, they must choose to resign as deputy minister. The two-year period should only be considered the latest deadline for compliance,” he stressed.
Dr. Arizona also addressed the government’s argument that appointing state officials as SOE commissioners serves as a form of government representation.
He noted that such representation can indeed be done, but it must be through officials who are not legally prohibited from holding the position.
“Both ministers and deputy ministers are explicitly barred by legislation from serving as commissioners, whether under the Ministry Law or the SOE Law itself,” Dr. Arizona clarified.
However, Dr. Arizona believes there will still be deputy ministers who attempt to take advantage of the two-year grace period to maintain dual positions.
Therefore, he urged President Prabowo to firmly order all deputy ministers to resign from commissioner posts in SOEs, as retaining both positions undermines professionalism in governance.
He further suggested that the president could instruct the Minister of SOEs to immediately dismiss deputy ministers from commissioner roles.
“The president’s commitment to forming a professional cabinet is being tested. If deputy ministers refuse to resign as commissioners, the only option is for them to step down from their deputy minister post and retain the commissioner role instead,” he emphasized.
Author: Lintang Andwyna
Editor: Gusti Grehenson
Post-editor: Lintang Andwyna
Illustration: samudrafakta