Key Benefits:
VERDICT
Number 58 /PUU-VI/2008
FOR JUSTICE BASED ON THE DIVINITY OF THE ALMIGHTY
CONSTITUTIONAL COURT OF INDONESIA
[1.1] Which examines, prosecuting and severing the case the constitution at the first and last level
dropping the verdict in the Test application case
Act No. 19 of 2003 on the State-owned Business Agency
against the State Basic Law of the Republic of Indonesia Year 1945, which
is submitted by:
[1.2] 1. Name: Mohamad Yusuf Hasibuan
Address: Cisalak, Swadaya RT Road. 02 RW. 03 Number 41
Depok City
2. Name: Reiza Aribowo Address: Komplek Polri Menteng In RT. 04 RW. 014 Number 15
South Jakarta
Next is referred to as ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- The applicant;
Heard the caption from the applicant;
Checking the evidence from the applicant;
2. SITTING MATTERS
[2.1] In a draw that the applicant submitted a request with a letter
an application dated 16 December 2008 registered in Kepaniteraan
Constitutional Court (hereafter called the Court of Justice) on
17 December 2008 registration Number 58 /PUU-VI/2008 was corrected
and received in the Court of Justice on 31 December 2008, which
outlines the following:
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I. CONSTITUTION OF THE CONSTITUTIONAL COURT
That Article 24C paragraph (1) Constitution of 1945 juncto Article 10 paragraph (1) Act
Number 24 of 2003 on the Constitutional Court, states that
Constitutional Court authorized to prosecute the first and last degree that
the verdict is final to test the legislation against the Act
Basic, severing the jurisdiction of the state agency's authority
provided by the Basic Law, severing the dissolution of the political party, and
severing the dispute about the election result common;
According to Prof. DR. Sri Soemantri, in his book The Rights of the Materiil Test in Indonesia,
1997, states that the Materiil Test Right is the authority to investigate and
then assess, whether a law of its contents is appropriate or
contrary to the higher rules of the law, as well as whether or not an
a certain power (verordenende thereof) is entitled to issue a certain
rule;
Therefore according to the applicant, the Constitutional Court of Justice authorized to
prosecute a request submitted by the applicant relating to the Test Materiil
Act No. 19 of 2003 on the State-owned Enterprises Agency
against the 1945 Constitution;
II. THE LEGAL POSITION AND INTEREST OF THE APPLICANT
A. That under Article 51 of the paragraph (1) and its Explanation Of The Law
Number 24 Of 2003 On The Constitutional Court (state Sheet
The Republic Of Indonesia In 2003 Number 98, Extra State Sheet
Republic Of Indonesia Number 4316, later called the Act of MK, which can
apply for test legislation against the Constitution of 1945 is
those who regard the rights and/or its constitutional authority
aggrieved by the enactment of a law, That is:
a. Individuals in Indonesia (including groups of people
have common interests);
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b. the unity of the indigenous law society as long as it is alive and in accordance with
the development of the society and the principle of the Republic of the Republic of Indonesia
which is set in promulg;
c. the public or private legal entity; or
d. country's institutions;
The explanation of the Law No. 24 of 2003 on the Court
Constitution, in Article 51 of the paragraph (1) confirms that: "Which is referred
with" constitutional rights " is the rights set in Act
Basic State of the Republic of Indonesia in 1945 ";
B. That in the law of the event the applicable data is declared only people who
have legal interests only, that is the person who feels his rights
is violated by another person, who can file a lawsuit (asas no suit
without law interest or zonder belang geen rechtsingan), meaning only
a person of legal interest only, i.e. people who feel the right-
his right is violated by another person, who can file a lawsuit, including
also a request;
In its development it turns out that the provision does not apply absolute
with respect to the acquisition of a specific person or agency to submit
the lawsuit, including the application, by naming the interests
the public, which in the universal law doctrine is known as legal standing.
The doctrine turned out to be not only known in doctrine, but it has also been
adopted in the regulation of inviters in Indonesia, such as the Protection Act
Consumer, the Environment Act, the Forestry Act and the Services Act Construction;
C. That the applicant is an Indonesian citizen of interest
is related to the a quo and very
interest against the goods and/or services that the BUMN produces for
meets the The applicant's life needs in order for self-development to be
increasing the life of the applicant's life. In addition, goods and/or services that
generated such BUMN is also required to society in order
embody the great prosperity of the entire Indonesian people;
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In addition the applicant is a member of the society above will and
his own desire in the middle of a moving society on the basis of concern for
may provide protection and enforcement of the law. the fair and the Right
Human Rights;
With this since the enactment of Law No. 19 of 2003
on the State-owned Business Agency, then the applicant is feeling aggrieved because
the restructuring and privatisation of the BUMN resulting in a potential loss
against the applicant, hence the applicant is very depends on
the provision of goods and/or services generated by the BUMN. As is the case
privatization that exists in the country's strategic power companies
is derived from PT. PLN, state-owned bank, purchase oil fuel and
transportation means now the quality of which the BUMN produces is highly
low;
More Applicant believes in the provisions of Article 1 of the figure 11
and the number 12 and the provisions of BAB VIII Restructuring and Privatization
consists of Article 72 of the paragraph (1), paragraph (2), and paragraph (3), Section 73, Section 74 of the paragraph (1),
and paragraph (2), Article 75, Section 76 of the paragraph (1) and the paragraph (2), Section 77, Section 78, Section 7, Section 7, Section 7, Section 7, Section 7, Section 7, Section 7, Section 7, Section 7, Section
79 paragraphs (1), paragraph (2), and paragraph (3), Section 80 of the paragraph (1), paragraph (2), and paragraph (3),
Section 81, Section 82, Section 83, Section 84, Section 85 of the paragraph (1) and paragraph (2), and
Section 86 of the paragraph (1) and (2) Act No. 19 of 2003 on the Agency
The State-owned Enterprises clearly contradictory to Article 27 of the paragraph (1) and the paragraph (2),
Article 28A, Section 28C paragraph (1), Article 28I paragraph (2), as well as Article 33 of the paragraph (2) and
paragraph (3);
Terms of restructuring and privatisation in Law No. 19
In 2003 on the State-owned Business Agency in other words deadly
constitutional rights for communities whose economic rate is medium
down (The applicant) or the poor in order to improve the welfare
the individual and the rest of the Indonesian people. This is clearly contrary to
Article 33 of the paragraph (2) and paragraph (3) of the 1945 Constitution;
It is associated with the current economic conditions of society, clearly not
allowing the applicant to consume goods and/or services that
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generated BUMN at a relatively cheap and affordable price for all
members of the community. So it was a setback if the Government
implemented a privatization policy for the BUMN in Indonesia. It is not only
is irrational but also unconstitutional;
Therefore, the applicant strongly feels that its constitutional rights are violated
and a potential disadvantage as guaranteed by the 1945 Constitution, that is:
1. Article 27 paragraph (1) of the Constitution of 1945 which reads, "All citizens simultaneously in law and government and shall be required
uphold that law and government with no exception";
2. Article 27 of the paragraph (2) of the Constitution of 1945 reads, "Each citizen is entitled
for the work and the livelihood that is worthy of humanity";
3. Article 28A UUD 1945 reads, "Everyone has the right to live and
has the right to maintain life and life";
4. Article 28C paragraph (1) of the 1945 Constitution that reads, "Everyone is entitled
develop yourself through the fulfillment of its basic needs, entitled
get an education and benefit from science
and technology, art and culture, in order to improve the quality of life and
for the welfare of the human race ";
5. Section 28I paragraph (2) of the 1945 Constitution that reads, "Everyone is entitled to be free of
The discriminatory treatment of any basis and is entitled
obtaining protection against the treatment of the nature of the Discriminatory
that ";
6. Article 33 of the paragraph (2) of the Constitution of 1945 reads, "The production branches that
are important for the country and which is in control of the lives of the many people held
by the state";
7. Article 33 of the paragraph (3) of the Constitution of 1945 which reads, "The Earth and the water and the natural wealth contained in it are controlled by the state and used
for the great prosperity of the people";
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Based on reasonable reasoning inconsistency is fundamental
by prioritizing privatization for Indonesian BUMN without seeing
the actual error was much posed by management and
The government itself, has resulted in constitutional rights and authority
The applicant intends to develop self, sustain life,
distancing itself from ignorance, increasing the tarf of his life, fulfilling
the basic needs in his life and other so forth have been harmed.
Because it has privatised BUMN it is certain that the items
and/or the resulting services are relatively high and difficult for the public
medium to bottom to meet the needs of its life, due to loss
The tax benefits that society pays during this time. Due to the lack of
the benefits are directly perceived to the community like the applicant
the economic level is medium to bottom. It is clearly contradictory
with the 1945 Constitution;
Thus the applicant argues that the applicant has a position
legal (legal standing) as a party in the request of an invite-
invite to the UUD 1945;
III. SUBJECT
Opening (Preambule) Constitution of 1945 affirm, "That truly
independence is the right of all nations and therefore colonialism
above the world must be abolished, as it is not In accordance with humanity
and perijustice ". Independence of the Republic of the Republic of Indonesia
It has long been coveted by the entire Indonesian people, not
with the exception of the founders of the Indonesian nation who is the best and best son of the nation
nation Furthermore, the independence of the founders of the Republic of Indonesia
Indonesia was also not only to gain power, bequeen
the power and happiness of certain groups. But efforts
to form an Indonesian state government that can advance
general welfare, divorce the lives of nations, participate
carry out the world order based on independence, peace
eternal and social justice;
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Therefore, it is not wrong that the entire Indonesian people expected
that the Indonesians were independent of any form of colonization, such as
economic, political, social, and cultural occupation. In this case it is free of
dependence on certain parties or any particular country. Enterprise
State-owned (BUMN) has a very important meaning in meeting
community life needs in a country;
Therefore, the BUMN can also be interpreted as one of the providers
the employment field which is created by the country to absorb the community
age of work to be able to participate in order to achieve the company's objectives With
the job, it can provide an income for each person to
meet the needs of life for both the person and the family, and can improve
live for the community to live in a continuous way. In accordance with the sound
sila to 5 Pancasila, that is, "Social justice for the entire people of Indonesia";
A. State Company (State-owned Enterprises)
After the enactment of the 1945 Constitution, the Government of the Republic of Indonesia as
A sovereign government and responsible for its people ever
working hard for the welfare of the entire Indonesian people;
In addition, the Government of the Republic of Indonesia has also ever attempted
as a general program of the Government in economics as in
garlined in the political manifesto of the Republic of Indonesia on 17 August 1959
regarding the need for reorganization in tools production and
distribution aimed at the implementation of Article 33 of the 1945 Constitution;
Article 1 of the Law Number 19 of the Prp Year 1960 about Country Enterprise
states that, " In Government Regulation the Act of Replacement
This one referred to the State Company is all companies in
any form that its capital for the whole is the wealth of the State
Republlik Indonesia, unless otherwise specified with or Based on the Invite-
Invite ".
Article 4 of the Law Number 19 of the Prp Year 1960 about the Country Enterprise
states that:
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(1) State Enterprise is a entity that is:
a. provide services;
b. General expediency;
c. Inform revenue.
(2) The country's corporate goal is to co-build the national economy
in accordance with the economy led by the announcement of the needs of the people and
composure as well as occupations of work within the company, towards society
the fair and prosperous materiil and spiritual.
Article 6 of the Law No. 19 Prp Act 1960 about State Company
stated that:
(1) The country company ' s Modal consists of the wealth of a separated country.
(2) The country company ' s Modal is not divided over the stocks.
(3) All licuid tools are stored in a bank designated by the Government.
Article 6 of the Law Number 19 of the Prp Year 1960 about the Country Enterprise
states that:
(1) Legal mounts, salaries, pensions and socongan as well as earnings-
Another earnings of directors and state corporate workers/workers are set
with government regulations.
(2) The directors lift and dismiss the company employees/workers
state according to the employment regulations approved by the Minister who
is concerned based on the company ' s principal regulation of the company
the state set by the Government.
B. Privatization
Britain was the first country to implement privatization as an instrument
its economic policy. In 1979, British PM Margareth Thatcher
made a major privatization with the idea
neoliberal in the British economy. Neoliberal does mean
slashing the role of government in the economy. A similar thing was done
by U.S. President Ronald Reagen in a near-concurrent priode. From
here is the birth of "Reaganomics" and Tharchersm " to refer to the pattern
the neoliberal policies of both countries;
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Privatization is not a people's mind fruit (not a nation's original concept
Indonesia). The insistence on privatization in Indonesia in order
increases the country's revenue target coming from International Monetary
Fund (IMF). Hubert Neiss from IMF in his interview to Reuters
Television says, "Privatization is moving ahead but you have to expect
there are some difficulties in implementation. Also the present world economic
environment is not conducive to quick privatization". (Arie Sukanti Hutagalung,
"Economic Yuridist Impact, Privatisation To The Assets Of BUMN Assets
Is Fixed", (Papers Delivered At The BUMN Private Day Seminar,
Challenges, Hope and Reality, Jakarta, 4 July 2002), page 1). This
further proved to the public that privatization is not pure
the thoughts of the best daughters of Indonesia;
It is increasingly convincing the public, that the Government is likely
take action Which is less effective in solving an
serious problem. While the Government's obligation as a holder
powers in a country are to establish viable policies and
benefits for all of its citizens (in this case the citizens
Indonesia) without exception;
More to the Privatization Committee of the Ministry of State of BUMN will privatize
37 BUMN. The privatized BUMN included 34 new BUMN entering
privatisation programs of 2008 and 3 BUMN, whose privatisation was delayed at the
in 2007. The privatization method will be done in 2 ways, i.e. through
prime offering (Initial Public Offering-IPO) in the capital markets and
direct sales to strategic sales investors (strategic sales) appointed by
Government (Indonesian Business, 5/2/2008);
BUMN that will be privatized among others, Medan Industrial Area, Region
Makassar industry, Wijaya Kusuma Industrial Area, BNI Persero, Adhi Karya,
PT. Indonesia Insurance Services, BTN, Jakarta Lloyd, Krakatau Steel, Industry
Sandang, PT. Core, Rukindo, and Ark Adi Useful, Later, PT. Plantation
Nusantara III, PT. Plantations Nusantara IV, PT. Plantations Nusantara VII,
and Sarana Karya, Semen Batu Raya, Waskita Karya, Sucofindo, Surveyor
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Indonesia, Nusantara Tied Area, Housing Development (through
IPO), Surabaya Industrial Area, and Industrial Engineering. Yodya Works, Chemistry
Farma and Indo Farma (both want mergers), PT. Kraft Aceh, PT. Dirgantara
Industry, Boma Vista, PT. Barata, PT. Inka, Shipping Dock Surabaya, Doc
Shipping Koja Bahari, Biramaya Karya, and Indonesian Ship Industry (Kominfo
Newsroom, 21/1/2008);
From 37 BUMN to be privatized, according to Secretary of State Ministry,
Muhammad Said Didu, Ministry of BUMN ready to release the entire stock
Government at 14 BUMN industrial sector (Business Indonesia Online, 25/1/2008).
And according to BUMN State Minister Sofyan Djalil, the Government will sell 12
BUMN to strategic investors (Business Indonesia, 21/1/2008). While
some of the other BUMN must be sold to foreign countries;
Then after Indonesia signed an agreement with the IMF, then
BUMN sales are increasing. Under the IMF, Indonesia was forced
tightening the budget with the reduction and elimination of subsidies,
raising the price of principal goods and public utilities, the increase
receipt of the tax sector and the sale of assets country by privatizing
BUMN. The new orde-run privatization program resumed
by increasing the number of BUMN sold both in the capital market as well as
to strategic investors. In 1998 the government again sold a 14% stake
PT. Cement Gresik to foreign company Cemex. 1999 Government
selling 9.62% of PT shares. Telkom, 51% shares of PT. Pelindo II to investors
Hongkong, and 49% of PT shares. Pelindo III Australian investors. 2001
The government again sold 9.2% of Chemical Farma shares, 19.8% stake
Indofarma, 30% shares of Sucoufindo, 11.9% of PT shares. Telkom. Between
2002-2006 privatization continued by selling 14 BUMN shares in the way
IPO and strategic sales (www.bumn-ri.com);
But privatization was not as sweet as it was described in the vision
The State Department of BUMN which will improve the role as well as the society
in the ownership of the BUMN shares, as if the wider community were involved in
the ownership of the BUMN. But we know, what it actually means.
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the community here is the owners of capital or investors. Because it is so not
it is possible that a wide community like most people in Indonesia can
buy a BUMN stock privatized by the Government. Meaning that
benefiting from the privatization of this BUMN is just a small fraction of the society that
has a large capital;
C. The concept of the National Economy and Social Welfare
Article 33 of the paragraph (1) of the 1945 Constitution confirms that, " Economy drafted
as a joint effort based on family principle ". Therefore,
State of the Republic of Indonesia since the beginning of its independence is expressly disadhering to the liberals in the system The economy and the flow.
The agility. However, the State of the Republic of Indonesia is the state
law based on Pancasila and the 1945 Constitution. Therefore, privatization
is not exactly what it feels like to be applied in Indonesia, considering Indonesia is the country
developing a very strong spirit of gotong royong and its family
(or in other words " United we are steadfast, divorced we collapse ");
Article 33 of the paragraph (2) of the 1945 Constitution confirms that,"The production branches
are important for the country and that has mastered the lives of the many people
controlled by the state ". As even the provisions of the constitution place the government as a power holder, major player and control holder
over the production branches that are important to the country and the ruling
hajat lives a lot of people. As a power holder, it is clear
the government is expected to break the deadlock over the issue
unemployment in the Unitary State of the Republic of Indonesia by improving
the management performance of BUMN, to be able to provide work field
to the public as many as to increase the people's life levels
Indonesia;
Therefore, privatization as mandated by Law Number
19 Year 2003 about the Proprietary Entity The country is not an appropriate choice and
a cutting-edge solution for the Indonesian nation. More privatization tends to be
harming the public (or it can also be categorised as impoveristing
society). As a matter of comparison and learning for all of us
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(in order not to repeat errors in the past) case of privatization
PT. Indonesia Satellite Corporation (Indosat);
Article 33 paragraph (3) UUD 1945 confirms that, " Earth and water and wealth
the nature contained within it is controlled by the state and used
for the great prosperity of the people ". From the provisions of the constitution it puts the government as earth, water and kekayan
nature of Indonesia to be used for greater prosperity
Indonesian people without exception;
Privatization as mandated Law No. 19 of 2003
about the State-Owed Business Agency is not an appropriate choice, but it tends to
detriment to society, at least this may be perceived as a result of implementation
water privatisation in Indonesia (chronological case of Syamsul Hadi et al., Post
Washington Consensus and Political Privatisation in Indonesia (Serpong: Left Marjin,
2007);
That with regard to the definition of "controlled by the state" as
referred to Article 33 of the 1945 Constitution, the Court has stated its stance
as stated in the Decree of the Court Number 001-021-022/PUU-I/
2003, which is spoken in open session to the public on the day Wednesday, 16
December 2004 as follows:
That in finding the understanding and/or intent of a provision
that contained in the Constitution of 1945 is not sufficient if only
hold on to the text of the text of the section concerned and only with
using one particular interpretation method. UUD 1945, as
in which any fundamental or constitutional law, is a system
the basic norm that provides a constitutional basis for the achievement of goals
life of a nation and state as outlined in the Opening
UUD 1945. As a system, the 1945 Constitution is a rule of rules
constituting the constitutional independence of Indonesia,
as affirmed in the opening of the 1945 Constitution, the fourth paragraph,
" Later than it is for forming a Government of the State of Indonesia
which protects the entire nation of Indonesia and the whole spill of blood
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Indonesia and to advance general welfare, lecture
the life of the nation, and participate in performing world order which is based
independence, eternal peace and social justice, then
-The independence of Indonesia is under the Basic Law
The State of Indonesia, which is formed in a framework of the State of the Republic
Indonesia, which is sovereign of the people, is based on the Godhead
Maha Esa, fair and civilized humanity, the unity of Indonesia and
The wisdom led by wisdom of wisdom in deliberation/
representation, as well as with the realization of a social justice for the whole of the people
Indonesia ". Therefore, any interpretation of a provision in
the provisions of the Constitution of 1945 must always refer to the purpose of the nation's life
and the country as outlined in the Opening of the 1945 Constitution
;
That by view of the 1945 Constitution as a system as
referred to, hence the state's mastery in Article 33 of the Constitution of 1945 has
a higher or wider understanding of possession in the conception
the law The data. The conception of control by the state is a legal conception
the public relating to the principle of the sovereignty of the people embraced in
The 1945 Constitution, both in politics and economics. In the understanding of sovereignty
the people, the people are recognized as the source, owner, and at once
the highest holder of power in a country's life, in accordance with
the doctrine "of the people, by the people, and for the people". In the sense of power
the highest was covered by the public's sense of possession by the people.
the collective. That the earth and water and its natural wealth are contained within
the state of the law of the state of its nature is the public property of the whole people.
the collective is mandated to the state to master it in order
used for the A great deal of mutual prosperity. Therefore, Article
33 verses (3) determine, "the earth and water and the natural wealth contained
in it are controlled by the state and used for a great deal
the prosperity of the people";
That if understanding is " controlled by country " only defined as possession
in the sense of the data, then the intended is not sufficient in
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uses that possession to achieve the goal of "magnitude
the prosperity of the people", which thus means the mandate to "advance
general welfare" and " embody a justice social for all
the people of Indonesia " in the Opening of the Constitution of 1945 cannot be realized. Nevertheless, the conception of the ownership of the data itself must be recognized as
one of the logical consequences of mastery by the state which includes also
the understanding of public ownership by the people's collectives over the sources
The wealth in question. The definition of "controlled by the state" is also not able
is defined only as a right to govern, because it is so
already by itself attached to the functions of the country without having to
specifically referred to in the Basic law. In case of Article 33
not listed in the 1945 Constitution, as usual in many countries
adhering to the liberal economy that does not regulate the basic norms
the economy in its constitution, itself is by itself. state authorized
perform the settings function. Because of this, the notion of "controlled by a state"
is unlikely to be reduced to only the authority of the state to set
the economy. Thus, both the view that defines
control by the state is identical to the possession in the conception of the data
and the view that interprets the country's understanding of the sense of control
only the authority of the arrangement by the state, both rejected by
The court;
That based on the description, the definition of "controlled by the state" must be defined
encompassed the meaning of mastery by the state in the broadwide source and
derived from conception the sovereignty of the people of Indonesia over any source
wealth " earth, water and the wealth of nature contained therein ",
also included in it the sense of public ownership by the people's collectives
upon the sources of the wealth in question. The people of that collectively
are conceptuciated by the 1945 Constitution giving the mandate to the state for
conduct a policy (beleid) and the action of the affairs (bestuursdaad),
setting (regelendaad), managing (beheersdaad), and supervision
(toezichthoudensdaad) for the purpose of the great prosperity of the people.
The function of the affairs (bestuursdaad) by the state is done by the Government
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with its authority to eject and revoke the perijinan facility
(vergunning), license (licentie), and concession (consessie). Set-up functions by
country (regelendaad) performed through the authority of the legislation by the DPR
with the government, and regulation by the Government. The management function
(beheersdaad) is carried out through the stock holding mechanism (share-holding)
and/or through direct involvement in the management of the Proprietary Entity
Country or State-Owed Law Agency as a Institutional instruments, which
through the State c.q. Government, underlying their reinstatement
sources of that wealth to be used for the enormity
the prosperity of the people. Similarly, the state's surveillance function
(toezichthoudensdaad) is done by the State c.q. Government, in order
supervising and controlling for the exercise of control by the upper state
wealth sources meant to be really done for the size-
magnitude of the prosperity of the whole people;
That in such a framework, mastery in the sense
of civil ownership (private) sourced conception of public ownership
with regard to the production branches that are important to the country and which
master of the hajat lives a lot of people according to the provisions of Article 33 of the paragraph (2)
controlled by the State, depending on the dynamics of the development of the conditions
the wealth of each branch of production. The one to be ruled by the State
is if (i) the branches of production are important for the country and control
hajat lives a lot; or (ii) important for the country but not master
hajat lives a lot; or (iii) is not important for the country but control
hajat lives a lot of people. All three must be ruled by the State and used
for the greater prosperity of the people. However, it was returned to
Government with the people's representative agencies to assess what and when
a production branch was judged to be important for the country and/or mastering the hajat
the lives of the many. The production branch that was at an important time for
states and mastered the lives of many people, at any other time may
change to be unimportant to the country and/or no longer master hajat
life of the many;
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Draw that on the basis of such a thought framework, almost all
BUMN in Indonesia is included in the production branch and holds the power
which devolve the State to the BUMN to manage natural wealth that
contained within the Indonesian earth as referred to by Article 33 of the paragraph
(2) and paragraph (3) of the 1945 Constitution, therefore the Government and the House judge that
it is important for the country and/or master hajat lives people
many, then of course the BUMN can't be privatized
as mandated in Law Number 19 of 2003
on the State-owned Enterprises;
The concept of advancing social welfare for the entire Indonesian people is
the choice of the founders of the nation to be realized by all citizens
Indonesia. This is reflected in the 1945 Constitution Article 33 of the paragraph (2) and verse (3) which
states that, "The production branches are important to the country and
which controls the lives of the many people controlled by the state". Next
paragraph (3) reads, "Earth and water and natural wealth contained
in it is controlled by the state and used for its magnitude
the prosperity of the people". But in reality, Indonesia's natural wealth
that is abundant, is not proportional to the number of human resources
that is intelligent to realize these ideals. BUMN expected
was able to fight for the interests of the people, as if a decline
due to corporate management errors and the weak government controls
would be that;
In addition to conflict with the 1945 Constitution, It turns out that the privatization policy that
was chosen by the Government did not run smoothly and was inclined to incur
a disadvantage. At least this has been revealed by Alan N.
Miler, among them:
1. the high price of public goods that the community must bear;
2. reduced job field available (in the sense of privatization
undermines existing job field and does not open
new job opportunities);
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3. The absence of the main rules governing privatization, thus privatization more
is aimed at increasing market gain from on social services;
4. Loss of public control over the assets of the country;
5. Privatization tends to stimulate and invite new forms of corruption
in the governance of the country ' s assets;
6. The economic sovereignty of the State of Indonesia is neglected as a result of the expulsion
BUMN strategic by a foreign party;
7. Rising poverty rates due to the narrow field of employment that
is available as well as the high unemployment rate.
D. Category Offense
1. The material norm that is tested in the Act Number 19 of 2003 on the State-owned Enterprises
Article 1 of 11 and 12 as well as the Chapter VIII Restructuring and Privatization provisions
Act No. 19 of 2003 concerning the Agency The State-owned attempt
which is considered to be in conflict with the 1945 Constitution, is:
a. Article 1 of 1 figure 11 of the Law No. 19 of 2003 on the Agency
State-owned Enterprises which reads, "The restructuring is an attempt that
is done in the framework of the BUMN vision which is one
step strategic to improve the company's internal conditions for
refine performance and improve the company's value ";
In this case Act No. 19 of 2003 is as if
describe to the community that BUMN is in no state
healthy. It is therefore necessary to restructure in order of the vision
BUMN. However, in reality the definition was not understood
how many BUMN are not healthy, whether in whole or in part.
There will be a definition of restructuring in the Act No. 19 of 2003
this, it is impressive that the entire BUMN is not healthy;
Next restructuring also " ...is one step to
refine the company's internal conditions to improve performance and
increases company value " clearly that Invite Invite Number 19
Year 2003 also again did not outline any strategic move any more than
18
of the restructuring, or in other words restructuring it is one among
of the various strategic steps there is. So the question is how much
its strategic step and why not be inducted into the Act
Number 19 of 2003. Invite Invite Number 19 of 2003 also
does not clearly describe what activities will be done and/or
selected to improve the internal condition of the company so that
enabled the performance of the performance the good and the company's value increase.
In addition to the legal language used is also unclear and difficult to
understand, so it is feared to create a wide variety of interpretations
in its implementation;
While it is already the establishment of laws to be
has a clear goal that is to be achieved by the language of the law that
is clear and easy to understand not to create a wide variety of
interpretations in its implementation.
Section 72
(1) The restructuring is done with mean to healthy BUMN so
can operate efficiently, transparently, and professionally.
In this section it clearly Act No. 19 of 2003 gives an impression
as if describing it to the community that BUMN in
circumstances are not healthy. Therefore, it is necessary to restructure with the intent
for the BUMN vision. Further Article 72 paragraph (1) also confirms that
BUMN has not been able to operate efficiently, transparently and professionally, by
hence it is indispensed with restructuring. The content of this section is obvious
is very irrelevant and prefabricated, it is visible from the words
"...in order to operate efficiently, transparently and professionally."
The question is unlikely that Indonesia ' s BUMN could be a big
as of now without any efficiency and power/professional attitude of
management and employees of the BUMN itself. Therefore, the provisions in
this section are too far-fetted and exaggerated, no longer exists
one person in the world could ensure that with a restructuring
against BUMN, then the BUMN could be It's guaranteed to operate efficiently,
19
transparent and professional. Thus it is not natural to be a provision
it was in Law No. 19 of 2003, given that
those laws should have the clarity of formulae to
not incur any kind of interpretation in its application.
(2) The purpose of the restructuring is for:
a. enhance the company ' s performance and value;
b. provide both dividends and tax benefits to the country;
c. produces products and services at a competitive price to
consumers; and
d. Facilitate the execution of privatization.
(3) The implementation of the restructuring as referred to in paragraph (1) remains
pay attention to the cost and benefit acquired.
In this section it is clear Act No. 19 2003 tried
reassuring to the public or the entire Indonesian citizen
that the restructuring of the BUMN was very favorable to the community and
the state, as it sounds, " provides the benefit of the Dividend
and taxes to the State ". What is very surprising is the Act
No. 19 of 2003 did not explicitly mention a restructuring such as
what is to be an option or that will be applied to the BUMN, so
can be ascerably restructuring it could improve performance and value
the company. In addition, the applicant also assumes that the benefits
perceived by the state are also very small in the presence of a restructuring that
is not yet clear that the concept (or a restructuring that has been applied
during this time), if compared when the country gains its revenue from
BUMN as the majority shareholder or capital owner of BUMN. So
at its core the content of this section is simply an impression of being a sweetener in the Invite-
Invite Number 19 of the Year of 2003. As the primary goal is
to facilitate the privatization or denationalisation of Indonesian BUMN such as
the sound of Article 72 verses (2) of the d. Thus the BUMN after being restructured could
generate goods and services at a competitive price to consumers
not affordable for all Indonesian citizens. It's clearly reducing
20
the role of BUMN as the necessary goods and/or services in
order to realize the enormity of the prosperity of the Indonesian people, if
the price is not affordable by the public, In particular society
with the middle economic level down.
Article 73 The restructuring includes:
a. sectoral restructuring whose implementation is adjusted to the policy
sector and/or the provisions of the laws of law;
b. corporate/corporate restructuring that includes:
1) increased intensity of venture competition, especially in the sectors that
there is a monopoly, both in regulation and natural monopoly;
2) the alignment functional relationships between the government as regulators and
BUMN as an enterprise entity, including the application of the principle-
principles of corporate governance are good and set the course in
frame the execution of public service obligations.
3) the restructuring internal that includes finances, organizations/management,
operations, systems, and procedures.
The explanation of Section 73 Act Number 19 of 2003 stated
that, "The sectoral restructuring is primarily intended To the sectors that
gets protected in the past or there is a natural monopoly. Restructuring
sectoral is intended to create a healthy business climate, so
there is a healthy competition, efficiency, and optimal service ... " Then
that being the question is whether after a restructuring
that is, then the sectors of which there is a monopoly are already
free of a monopoly or simply a hand transfer;
In this case the applicant will try to decipher his views on
the provisions of the restructuring that are in the Act Number 19 of the Year
2003 on the State-owned Enterprises, it was taken so that there would not be much
a repeat of the same words;
The concept of restructuring that existed in Act No. 19 of 2003
is very not clear and tend to pose a wide variety of interpretations
21
in its application. The impression described by Act Number
19 of 2003 was to the public, that the BUMN was in no state
healthy. It is therefore necessary to restructure in order of the vision
BUMN. However, the definition of the restructuring itself cannot provide
the limitation of how much BUMN is unwell, whether it is entirely or
in part. So this could potentially cause a variety of problems
in its application, due to the concept of restructuring that was intruding in
this legislation is undercooked or lack of clarity of purpose;
More charge material in Law No. 19 of 2003 on
The State-owned Business Agency, in particular that set about restructuring
against BUMN is extremely blurred and the absence of clarity of purpose as well as
the clarity of rumusan, so that It is feared that it will impact the performance
BUMN itself. For example if a restructuring is conducted against
one of the BUMN is an internal restructuring that includes finances and
BUMN's management/management as mandated in the Invite-
Invite Number 19 Year 2003, then under the pretext of carrying out
the provisions in such legislation thousands of employees of the BUMN were laid off or
at home, when this clearly violates the fundamental rights that have been
mandated by the 1945 Constitution and regulations Other laws.
Then the question is, is it such behavior or phenomenon
in accordance with Act Number 19 of 2003, its answer is appropriate,
because the legislation does not expressly provide a constraint
restructuring as to what it can do;
From the description above, give us a very clear description
all, the applicant who assumed that the Act
No. 19 of 2003 on the State-owned Business Agency in particular Article 1
number 11, Section 72 of the paragraph (1), paragraph (2), and paragraph (3) as well as Section 73, has
removed the meaning Fair legal certainty for the people of Indonesia,
especially for the lower middle class (BUMN employees). While the Article
28D paragraph (2) states that, "Everyone has the right to work and
gets the fair and fair treatment and is worth the relationship
22
work". Its impact on the applicant and the entire Indonesian people in general
is the loss of opportunity to obtain the goods or services that
generated by the BUMN at an affordable price. While the role of BUMN
as a producer of goods and/or services is indispensed by the applicant and
the entire Indonesian people in order to fulfill its life needs
embodied the great prosperity of all the people. Indonesia;
Suad Husnan in the second book of Management Theory and Implementation
(Short-Term Decision) (1998), stated that the restructuring
represents an activity to change the structure of the company. In other words
restructuring can mean enlarging or scaling the structure
the company. In connection with the restructuring, J. Fred Weston and Thomas
E. Capeland (Managerial Finance, 1991) called the four forms, which were
expansion, sell off, corporate control, and the change of ownership. Expansion can
be taken through a variety of ways, including mergers and acquisitions, tender offers
and joint ventures;
If viewed from legal aspects, then the company restructuring can only be
in place of the The entity with the status of the legal entity (in this case
Limited liability). Due to corporate restructuring in the manner
mergers/mergers, consolidasi/smelting and acquisitions (takeovers)
can only be implemented on the Limited Perseroan, without affecting
existence of the status of the company concerned as an institution;
Some other forms of restructuring are consolidation,
dissolution of the effort (liquidation), recruitment (kepailitan), business dismissal
(split off), the exchange of efforts (spin off), revaluation of fixed assets (revaluations),
recapitalization and reorganization of the effort.
In the meantime, to reduce negative equity (negative equity) due to the load
the debt is done some action e.g. rescheduled repayment
debt (rescheduling), debt reduction (hair cut), debt exemption (debt
remision), conversion of debt to equity (debt-equity swap), and foreclosure
debt warranty items;
23
According to Prof. DR. Sri Redjeki Hartono, SH corporate restructuring can
be executed in positive situations or in negative situations, i.e. in
the company development framework or in order to resolve difficulties
the company. Therefore it can be said that corporate restructuring
is one of the most important and necessary actions in the world
effort, in order to the economic life system and the enterprise world
that is healthy;
Some legal provisions are available, fundamentally a goal
and a specific objective, i.e., to keep the balance of balance
interest in the community. As the legal philosophy values in
generally and there is a recognized law (in this case norma/value
which is written in writing) always has the purpose of protecting the party
third. Third party (anyone) should not be harmed by the legal action
of a particular party or other parties (in this case doing
the conduct of the law towards the restructuring of the company).
The applicant assumes that the provisions of the restructuring in the Act
No. 19 of 2003 have not been able to accommodate a range of interests
the public, so that the provisions of such restructuring tend to be
raises losses for the applicant in particular and the public at
generally the loss of opportunity acquiring goods and/or services
generated by the BUMN at an affordable price. This is clear
in violation of the applicant ' s constitutional rights as set in
The Basic Law of 1945, among them:
1. Article 27 paragraph (1) "All citizens simultaneously in law and
governments and shall uphold the law and governance with
there is no exception";
2. Section 27 paragraph (2) "All citizens are entitled to a job and a decent livelihood
for humanity";
24
3. Article 28A "Everyone has the right to live as well as the right to maintain life and
her life";
4. Section 28C paragraph (2) "Everyone is entitled to advance itself in the fight for its right
collectively to build a society, nation and country";
5. Section 28I paragraph (2) "Everyone is entitled to be free from the discriminatory treatment of
any basis and deserve protection against the treatment
that discriminates is";
6. Article 33 of the paragraph (2) "The production branches are important to the state and the ruling
hajathidup people are widely held by the state";
7. Article 33 paragraph (3) "The Earth and the water and the natural wealth contained therein are controlled by
the state and used for the great prosperity of the people";
b. Article 1 number 12 of the Law No. 19 of 2003 on Agency
State-owned Enterprises which reads, " Privatization is the sale of shares
Persero, both partially and entirely, to other parties in order
increase the company's performance and value, enlarge the benefits to
country and society, as well as expand ownership of shares by
society;
In this case Act No. 19 of 2003 as if giving
the opportunities to the public that the BUMN can be owned by the community
by the way conduct a share purchase of a company stake in the existing BUMN
privatization. However, from the definition of Act No. 19
In 2003 it also tended to deflede its own direction, from
expanding ownership of shares by the public to be neglected because
there were sales words. The persero stock, in part or in the whole
25
to the other party. The other side may contain the public meaning
and/or foreign/foreign investors and others as it is;
On the other hand, Act No. 19 of the Year 2003 was also impressed
using the sweeteners ' words ("gombal") , for example privatization can
enlarge benefits for the state and society, as well as expand
ownership of shares by the public, whereas we know it can be certain
that privatization is only can benefit from a large income
only once or a few times (depending on the
or whole of the persero stock being sold) but that it certainly delets
the government's acquisition of the profit or deviden obtained by BUMN as
a BUMN liability form for Lease it to the Government as
shareholders or capital owners of the BUMN. If possible, then
it is more profitable where to manage and be the owner of a vehicle, ship
or the company itself, or sell it to someone else. The answer
is for sure to be more profitable to manage and have it alone. In addition,
prior to the privatization provision in Act No. 19 of the Year
2003 then the collective ownership of the public over the BUMN could be felt
the benefit of the applicant ' s life needs and the whole of the people
Indonesia at the price of goods and/or services generated by BUMN relative
affordability. But after the privatization provision was rolled out by
the government passed the Act No. 19 of 2003, instead
otherwise it did;
It was already the establishment of laws. created
because it is indeed absolutely necessary and beneficial in setting
community life, nation and country, not instead;
Article 74
(1) Privatisation is done with intent for:
a. expand the community ownership of Persero;
b. enhance the company ' s efficiency and productivity;
c. creates good financial structure and financial management/
strong;
26
d. creating a healthy and competitive industrial structure;
e. creating a global saing and global-oriented persero;
f. grow the business climate, macro economy, and market capacity.
(2) Privatization is done with the goal of improving performance and value
add the company and improve the role as well as the inner community
ownership of the persero stock.
In this case Act No. 19 of 2003 as if giving
an impression to the public that the privatization of BUMN could expand
the community ownership of the persero, despite the concept of privatization in definition
Act No. 19 of 2003 was also impartial communities and
are very obscure. The No. 19 Act of 2003 was also
re-assured the public that privatization could improve
the company's efficiency and productivity, but which is what it is
is how it is the price of goods and/or services generated, with
is still reachable by the lower middle economic group society
such as the applicant. Then Act No. 19 of 2003 was also gleefully
arrogant or imposing the expiring privatization or denationalisation of BUMN
Indonesia, this is reflected by the following words, that privatization
can create a good/strong financial structure and financial management.
Then when towards the end of 2008 this Indonesiian was affected by
the global crisis, whether such a statement could preserve the truth
the concept and its arrogance? More than Law Number
19 of 2003 also stated that privatization can create a structure
healthy industry and competitor; creating a saing-powered Persero and
global oriented; and grow the business climate, macroeconomics, and
Market capacity. Then what the question is whether the provisions
can be accounted for the truth or just as
a mere sweetener word To create a positive understanding.
for doing so. privatisation in Indonesia with the exclusion of
the negative impact posed by privatissi itself. While according to
The negative impact applicant posed by privatization it is not comparable
with the benefits felt by the public and the State;
27
Article 75
Privatisation is done with regard to the principles of transparency,
independence, accountability, accountability, and fairness.
Article 76 (1) The privatized Persero should at least meet
criteria:
a. The industrial/industrial business is competitive; or
b. The industrial/business sectors whose technological elements are rapidly changing.
(2) Some of the assets or activities of the persero carry out the obligations
general services and/or the following activities legislation
efforts must be done by BUMN, it can be separated to be used
inclusion in the company's establishment for next if necessary
can be privatized.
In this case Act No. 19 of 2003 as if giving
the impression to the public that privatization BUMN is done with
paying attention to the principles of transparency, independence, accountability,
accountability, and the kewajeness. While normally for a transaction
sales are reasonable if those principles are implemented, but
the problem is privatization is problematic or
contrary to Article 33 verse (2) and paragraph (3) of the 1945 Constitution;
In addition to the Law Number 19 of 2003 also isyrise that
the privatized persero must at least meet the criteria,
like the industry/business sector competitive and industrial/venture sectors of element
fast technology Changed. It's certainly a very detristatement to the interests
the applicant and the entire Indonesian citizen. It should be according to the applicant
the sectors are controlled by the State through the control of the BUMN
that moves in the field to take part in improving the life of life
the Indonesian people, other than that, if the BUMN are also available. managed by the Government
as a persero stock owner or owner of capital, it can be guaranteed
the public benefits the availability of goods and/or services
at an affordable price;
28
More Act No. 19 of 2003 also signalled that
Some of the assets or activities of the persero carry out the obligations
the general service and/or the based on activity legislation
Its efforts must be done by the BUMN, it can be separated to be made
inclusion in the company's founding for next if necessary
can be privatized. Hal This is very proven to the whole community
Indonesia how much The privatization spores are done in Indonesia.
Dates is the restoration of the State function as embodiment
The creation of the welfare of the Indonesian people as mandated in
Constitution of 1945;
Article 77 The unprivatized Persero is:
a. Persero whose business fields are based on the rules of the invite-
invitation can only be managed by BUMN;
b. Persero moving in the business sector related to defense
and state security;
c. A moving persero in a particular sector that the Government is given
special tasks to carry out certain activities related to
community interest;
d. Persero moving in the field of natural resource endeavour
under the provisions of the laws banned for
privatized.
In this case Act No. 19 of 2003 as if giving
the restrictions on the BUMN that could be privatized to the society
as mandated by the provisions of the laws. However
is already a common secret that laws
can change the way of view, its purposes and its provisions if
the leader's way of view or forming a law is willing to do so.
It is visible from the example of several laws that
states that most of the BUMN is the production branch
which is mandatory for the State to be as large as the prosperity of the people.
29
Will but post-reform 1998 the provision slowly leads to
the leberal economy system which impacts the provision of the provisions
in some strategic BUMN. Controlled by the state. This is
proof, that the resulting law product depends on the way
view who implores or the leadership of the leadership in
The Republic of Indonesia. Then, if Act Number 19 of 2003
confirms that the unprivatized Persero is a persero
whose field of effort is under the provisions of the laws,
then if it is later The provisions of this law permit
to privatize, then automatically the provisions of Article 77
Act No. 19 of 2003. This is a sweetener provision and
graze only;
Section 78
Privatization is implemented in the manner:
a. share sales based on the capital market provisions;
b. share sales directly to investors;
c. Stock sale to the management and/or employee concerned.
Article 79
(1) To discuss and decide on the policy on privatization in respect of
with a cross-sectoral policy, the government forms a committee
privatization as a coordination container.
(2) The privatisation committee is headed by the Coordinating Coordinators Minister
The economy with members, namely the Minister, Finance Minister, and
Minister The technical venue of the persero does business activities.
(3) The membership of the privatisation committee as referred to in paragraph (2)
is set with the Presidential Decree.
In this case, Invite Invite Number 19 Year 2003 has provided and
illustrates the ultimate goal of direct stock sales
to investors, but in this case it is not to be determined whether this investor word
can mean domestic investors or outside investors The country or the second-
Both. But if both are of course to be of interest to the whole
30
the people of Indonesia and increasingly prove that magnifide benefits
for the country and expanding ownership of the stake over persero is
a lie and can be ruled out or not Primary purpose;
When it is already an establishment of legislation created
because it is absolutely necessary and beneficial in governing
the life of society, nation and country, not the other way around.
In addition to the clarity of the formula is also very necessary in formation
laws, this is necessary to prevent the occurrence of
various interpretations in its implementation;
Article 80 (1) The privatization committee is tasked to:
a. formulating and setting general policy and requirements
implementation of privatization;
b. set the necessary steps to streamline
privatization process;
c. discuss and provide a way out of strategic issues
arising in the privatization process, including those relate
with the Government sectoral policy.
(2) The privatization committee in performing its duties as intended
in paragraph (1) may invite, request input, and/or help
government agencies or other parties viewed as necessary.
(3) The chairman of the privatisation committee regularly reports the development
implementation of its duties to the President.
Article 81 In implementing Privatization, the Minister is in charge of:
a. Compiling a Privatization annual program;
b. submitted the annual Privatization program to the privatisation committee for
obtain a directive;
c. perform Privatization.
31
Article 82
(1) Privatization must be preceded by the selection of the company-
the company and basing on the criteria set out in the Regulation
Government.
(2) Against the company that has been selected and meets the criteria
specified, upon receiving the recommendation from the Finance Minister,
next is socialized to the community and consult with
The People's Representative Council.
Article 83 Further provisions on the privatization manner are set up with Regulation
Government.
Section 84 Any person and/or legal entity with potential clash
interest is prohibited from engaging in the Privatization process.
Section 85 (1) Related Parties are in the program and Privatization is required
keeping the privacy over information obtained throughout the information
It is not yet open.
(2) The breach of the provisions as referred to in paragraph (1)
imposed sanctions in accordance with the provisions of the laws
The provisions of Section 79 paragraph (1), paragraph (2), and paragraph (3), Section 80 of the paragraph (1), paragraph
(2), and paragraph (3), Section 81, Section 82, Section 83, Section 84, Section 84 and Section 85 Invite
Invite Number 19 Year 2003 is the continued condition of the
about privatization in Indonesia, therefore if the Assembly of Justice's Assembly
The Constitution agrees with the applicant then it is certain that the provision
is untenable because it is theoretically and
The implementation of the privatization concept is very much about the constitution
Indonesia In particular Article 33 of the paragraph (2) and paragraph (3) of the 1945 Constitution;
Therefore, the applicant will attempt to outline his views on
the privatization provisions which existed in Law No. 19 of 2003
32
about the State-owned Business Agency, it is taken so that there is not much to happen
repetition of the same words;
The concept of privatization that existed in Act No. 19 of 2003
strongly not clear and tend to create a wide variety of interpretations
in its application. See the impression outlined by Act Number
19 of 2003, as if this legislation provides the opportunity to
the public that the BUMN can be owned by the public by means of
making a share purchase The company of the privatized BUMN.
But from that definition Law No. 19 of 2003 also
tends to deflede its own goal, from expanding ownership
shares by the public become neglected due to sales words
persero shares, both partially and All over the other side. Other parties
could have contained the meaning of society and/or asing/investors
foreign and other designs;
In addition to the benefits the community has gained by the one depicted in
This legislation is also not equally great, or with other words benefits in
this legislation is too muchless. While it is already an establishment
legislation is made because it is absolutely necessary
and is beneficial in regulating people's lives, nation and
countries, not the other way;
More Again the charge material in Law No. 19 of 2003 on
The State-owned Enterprises Agency, specifically the privatization
against the BUMN was blurred and the absence of clarity of purpose and
the clarity of rumusan, so it is feared that it will impact the performance
BUMN itself. In addition to the Act No. 19 of 2003, it was also only
describing the positive impact of privatization itself. While the impact
negative on privatization also did not lose its importance and very much,
like:
1. The high price of public goods that the community has to endure;
33
2. Reduced job fields available (in the sense of privatization
undermines existing jobs and do not open
new job opportunities); 3. Increase in poverty due to the narrow field of employment that
is available as well as the high unemployment rate; 4. The absence of the main rules governing the privatization, thus privatization more
is aimed at increasing the market advantage of on social services; 5. Loss of public control over the country ' s assets; 6. Privatization tends to stimulate and invite new forms of corruption
in the governance of the country ' s assets. 7. The economic sovereignty of the State of Indonesia is neglected as a result of the expulsion
BUMN is strategic by foreign parties, (such as Indosat and Telkomsel).
From the description above, provides a very clear picture for us
all, the applicant assumes that the Act
Number 19 of 2003 on the State-owned Business Agency in particular Article 1
number 12, Section 74 paragraph (1) and paragraph (2), Section 75, Section 76 paragraph (1) and paragraph
(2), Section 77, Section 79, Section 79 of the paragraph (1), paragraph (2), and paragraph (3), Section 80 of the paragraph
(1), paragraph (2), paragraph (2), and paragraph (3), Section 81, Section 82, Section 83, Section 83, Section 83, Section 84, Section 84, Section 84, Section 84, Section 84, Section 84, Section 84, Section 84, Section 84, Section 84, Section 84, Article 85
It has eliminated the meaning of fair legal certainty for
the public Indonesia, especially for the lower middle class (employee
BUMN). While Article 28D paragraph (2) states that Everyone is entitled
to work and earn fair and fair treatment
in the working relationship. The impact for the applicant and the entire Indonesian people
in general is the loss of opportunity to obtain goods or
the services generated by the BUMN at an affordable price. While the role
BUMN as a producer of goods and/or services is indispensed by the applicant
and the entire Indonesian people in order to fulfill its life needs
in order to realize a great prosperity for the whole people
Indonesia;
It clearly violates the constitutional rights of the applicant as
set up in the 1945 Constitution, among them:
34
1. Article 27 paragraph (1) "All citizens simultaneously in the law and
governance and shall uphold the law and governance with
no exceptions";
2. Section 27 paragraph (2) "The citizens of the country are entitled to a job and a decent livelihood
for humanity";
3. Article 28A "Everyone has the right to live as well as the right to maintain life and
her life";
4. Section 28C paragraph (2) "Everyone is entitled to advance itself in the fight for its right
collectively to build a society, nation and country";
5. Section 28I paragraph (2) "Everyone is entitled to be free from the discriminatory treatment of
any basis and deserve protection against the treatment
that discriminates is";
6. Article 33 of the paragraph (2) "The production branches are important to the state and the ruling
hajat lives a lot of people controlled by the state";
7. Article 33 paragraph (3) "The Earth and the water and the natural wealth contained therein are controlled by
the state and used for the great prosperity of the people";
2. Violation of Law
That Act No. 19 of 2003 tends to be subject to
Washington Consensus. It is based on Article 33 of the paragraph (2) of the 1945 Constitution
stating that the production branches are important to the country. and who
mastered the lives of many State-ruled people. In this case the Government
tends to direct Indonesia's economic development based on
the capitalist system and complies with the rules set by the State
35
superpowers. As a comparison material or proof of Government compliance
The Republic of Indonesia related to economic policy taken during this time can
be seen from the contents of Washington Consensus;
By economist John Williamson economic reform Summarizing in ten
provisions referred to as Washington Consensus, i.e.: (1) tightening
fiscal; (2) reduce the allocation of Government funds for public sectors such as
health, education, and development infrastructure, to be diverted to
the more profit-oriented sector; (3) taxation reform; (4) liberalistie
interest rate values; (5) the application of competitive exchange rate; (6) liberalization
trade; (7) liberalization of foreign investment; (8) privatization; (9) deregulation; (10)
warranty of ownership the public. Among the ten points, privatization, liberalization and
fiscal discipline is the main pillar to support the lamentations of functions
markets effectively;
It is important to remember that the United States policy in the context of the cold war
not solely economic aid without a political charge. The United States
many loans to the developing world provided that
would like to improve its market (in other words, not to socialism or
communism). It is not much different than before, that the policy
privatization (which is included in the Washington Consensus) is one
form of economic invasion of developed countries (especially the United States and
the UK that is the most compact ally in various fields such as
economic, social, and political even war policies, such as the Iraq war and
Afghanistan a few years ago) against countries with a degree
weak economy, economy developing and State with resources
low human beings will but have sufficient natural resources
tempting, like Indonesia;
From that description above present the conclusion that the birth of the Invite-
Invite Number 19 Year 2003 about the State-owned Enterprises Agency has been
Clear and real contradictory to the 1945 Constitution;
J. Thus, because of the Constitutional Court as the Constitutional Court (The
Sole or the Highest Interpreter of the Constitution), and the Constitutional Court
36
as the Protector of the Constitutional Rights (The Protector of the Citizens '
Constitutional Rigts), then the applicant is hopeful of protecting the right
the constitutional applicant with interpret that the restructuring and
privatization as set in Act No. 19 of 2003
on the State-owned Business Agency not in accordance with the provisions of the 1945 Constitution;
Based on that description above, if Constitutional Court as a Penafsir
Constitution (The Sole or the Highest Interpreter Of the Constitution), and as
The Protector of the Constitutional Rights (The Protector of the Citizens ' Constitutional Rigts)
agrees with the request of the applicant, then the applicant please
The Constitutional Court grants The following is:
II. PETITUM
1. Grant the supplicant request;
2. States that the charge of Section 11 and the number 12 and the section
BAB VIII Restructuring and Privatization consisting of Article 72 paragraph (1), paragraph
(2), and paragraph (3), Section 73, Section 74 of the paragraph (1) and paragraph (2), Section 75, Section 76, Section 7, Section 7, Section 7, Section 7, Section 7, Section 7, Section 7, Section 7, Section 7, Section 76
paragraph (1) and paragraph (2), Section 77, Section 78, Section 79 of the paragraph (1), paragraph (2), and paragraph
(3), Section 80 of the paragraph (1), paragraph (2), and paragraph (3), Section 81, Section 83, Section 83, Article
84, Section 85 of the paragraph (1) and the paragraph (2), and Section 86 of the paragraph (1) and the paragraph (2), and the paragraph (2), and the paragraph (2), and the paragraph (2), and the paragraph (2), and the verse (2) Invite-
Invite Number 19 Year 2003 on State-owned Enterprises (Sheet
Republic of the Republic) Indonesia Year 2003 Number 70, Extra Sheet
State Number 4297) contradictory to Article 33 of the paragraph (2) and paragraph (3)
The Basic Law of the Republic of Indonesia;
3. States that the charge of Section 11 and the number 12 and the section
BAB VIII Restructuring and Privatization consisting of Article 72 paragraph (1), paragraph
(2), and paragraph (3), Section 73, Section 74 of the paragraph (1) and paragraph (2), Section 75, Section 76, Section 7, Section 7, Section 7, Section 7, Section 7, Section 7, Section 7, Section 7, Section 7, Section 76
paragraph (1) and (2), Section 77, Section 78, Section 79 of the paragraph (1), paragraph (2), and paragraph (3),
Section 80 of the paragraph (1), paragraph (2), and paragraph (3), Section 81, Section 82, Section 83, Section 84,
Section 85 of the paragraph (1) and the paragraph (2), and Article 86 of the paragraph (1), and the paragraph (2), and the paragraph (2), and the paragraph (2), and the paragraph (2), and the paragraph (2), and the (2) Invite-
Invite Number 19 Year 2003 on State-owned Enterprises (Sheet
The Republic State Indonesia Year 2003 Number 70, Extra Sheet
State Number 4297) did not have a binding legal force;
37
4. Ordered the loading of this ruling in the Republic of Indonesia News
as it should be.
[2.2] It is balanced that to strengthen its application,
The applicant has submitted the written evidence which was given a Proof of P-1 until
with a Proof of P-2, as follows:
1. Proof of P-1: Photocopy of the State Basic Law of the Republic of Indonesia Year
1945;
2. Evidence P-2: Photocopied Act No. 19 of 2003 on Agency
State-owned Enterprises;
[2.3] weighed that to shorten the description in this ruling, all
something that happened in the trial was quite appointed in the news trial event,
which is one unbreakable unit with this ruling;
3. LEGAL CONSIDERATIONS
[3.1] Draw that the main legal issue of the applicant's plea
is regarding the material testing of Article 1 of the 11 and the number 12, Article 72 of the paragraph
(1), paragraph (2), and paragraph (3), Section 73, Section 74 of the paragraph (1) and paragraph (2), Section 75, Section
76 paragraph (1) and paragraph (2), Section 77, Section 79, Section 79 of the paragraph (1), paragraph (2), and paragraph
(3), Section 80 of the paragraph (1), paragraph (2), and paragraph (3), Section 81, Section 82, Section 83, Section 84,
Article 85 of the paragraph (1) and the paragraph (2), as well as Article 86 of the paragraph (1) and paragraph (2) of the Act
Number 19 of 2003 on the State-owned Business Agency (State sheet
Republic of Indonesia Year 2003 Number 70, Additional Gazette Republic of State
Indonesia Number 4297, subsequently called Act 19/2003), against the Act
Basic State of the Republic of Indonesia in 1945 (next called UUD 1945);
[3.2] Balanced That Before Entering The Subject, the Court
The Constitution (subsequently called the Court) was first going
consider:
38
1. The Court's authority to examine, prosecute, and disconnect
plea a quo;
2. Legal standing (legal standing) The applicant to apply
a quo.
Against the two things in question, the Court gives consideration
as follows:
The Court's authority
[3.3] Considering that under Article 24C of the paragraph (1) of the Constitution of 1945, one
the Constitutional authority of the Court is to prosecute at first level and
the last of which is final to test the legislation against
Basic Law;
[3.4] Draws that the a quo plea is concerning testing
legislation against the Basic Law, in casu legislation 19/2003 against
Constitution of 1945, then the Court is authorized to examine, prosecute, and disconnect
plea a quo;
Legal mounts (legal standing) The applicant
[3.5] weighed that under Article 51 of the paragraph (1) Act
Number 24 of 2003 on the Constitutional Court as well as its Explanation
(sheet of State of the Republic of Indonesia Year 2003 Number 98, Additional
sheet of state of the Republic of Indonesia Number 4316, subsequently called Act MK),
which may apply for test of legislation against the Constitution
1945 is those who consider the rights and/or authority
the constitutionality given by the 1945 Constitution is harmed by the enactment of the
legislation, That is:
a. Individuals in Indonesia (including groups of people
have common interests);
39
b. the unity of the indigenous law society as long as it is alive and in accordance with
the development of the society and the principle of the Republic of the Republic of Indonesia
which is set in promulg;
c. the public or private legal entity; or
d. country agencies;
[3.6] Draw that to be accepted as the applicant in case
testing the legislation against the Constitution of 1945, according to the provisions of Article 51 of the paragraph
(1) MK Act, then the intended party must explain:
a. The name of the supplicator as specified in Section 51 of the Act (1) of the MK Act;
b. no constitutional rights and/or constitutional authority granted
by the 1945 Constitution resulting from the enactment of the legislation
dimohoned testing;
[3.7] Draws that the Court since the Distermination of Number 006 /PUU-III/2005
dated 31 May 2005 and Putermination Number 11 /PUU-V/2007 dated 20
September 2007 establishing that loss of rights and/or authority
constitutionally referred to Article 51 paragraph (1) MK Act must meet
five terms, that is:
a. the rights and/or constitutional authority of the applicant given by
Constitution of 1945;
b. The rights and/or constitutional authority by the applicant are considered
aggrieved by the enactment of the legislation, which is in the process of testing;
c. the constitutional loss must be specific (special) and actual or
At least a potential that according to reasonable reasoning can be confirmed
will occur;
d. (causal verband) relationship between the losses referred to and
the legislation that is being moveed for testing;
e. It is possible that by the request of the request then the loss
the constitutional one that the postured will not or no longer occur;
40
[3.8] Draw that the applicant in the a quo request as
is in paragraph [3.5] above is included in the qualifying individual applicants of the Indonesian country as per Section 51 verses (1) letters a bill MK;
[3.9] Draw that according to the applicant's rights and/or authority
the constitutional law is set in the 1945 Constitution (P-1 proof), that is:
a. Article 33 of the paragraph (2): "The production branches are important to the state and that
controls the life of the many people over the country";
b. Article 33 of the paragraph (3): "Earth and water and natural wealth contained in
it is controlled by the state and used for the great-great
the prosperity of the people";
[3.10] A draw that even though the applicant meets the qualification as
The applicant testing Act 19/2003 against the Constitution of 1945 and has the right
the constitutional granted by Article 33 of the paragraph (2) and paragraph (3) of the 1945 Constitution, but
it is still to be proved whether the constitutional right is meant to be harmed, either
actual or potential by Article 1 of the number 11 and number 12, Section 72 of the paragraph (1),
paragraph (2), and paragraph (3), Section 73, Section 74 of the paragraph (1) and paragraph (2), Article 75, Section 76
paragraph (1) and paragraph (2), Section 77, Section 79, Section 79 of the paragraph (1), paragraph (2), and paragraph (3),
Section 80 of the paragraph (2), paragraph (2), and paragraph (3), paragraph (2), paragraph (2), and paragraph (2), paragraph (2), and paragraph (2), paragraph (2), and paragraph (2), paragraph (2) 81, Section 82, Section 83, Section 84,
Article 85 of the paragraph (1) and paragraph (2), as well as Article 86 of the paragraph (1) and paragraph (2) of the Act 19/2003,
as the Applicant;
[3.11] Draw that Article 1 of 11 and 12, Section 72 of the paragraph (1), paragraph
(2), and paragraph (3), Section 73, Section 74 of the paragraph (1) and paragraph (2), Article 75, Section 76 of the paragraph
(1) and paragraph (2), Section 77, Section 78, Section 79, Section 79. verse (1), paragraph (2), and paragraph (3), Section
80 paragraph (1), paragraph (2), paragraph (2), and paragraph (3), Section 81, Section 82, Section 83, Section 84, Section 85
paragraph (1), and paragraph (2), and Article 86 of the paragraph (1) and paragraph (2) of the Act 19/2003 stated:
1. Article 1 of the number 11: " Restructuring is an attempt made in order
A BUMN visibility is one of the steps
strategic to improve the company's internal conditions
41
to correct the performance and improve the
company value;
2. Article 1 number 12: "Privatization is Persero stock sales, both partially and all, to the other party in order
increase the company's performance and value, enlarge
benefits for the country and society, as well as expanding
ownership shares by the public ";
3. Section 72
Paragraph (1): "The restructuring is performed with the intent to provide the BUMN
to be able to operate efficiently, transparent, and professional";
Verse (2): " The purpose of the restructuring is to: a. Increase performance and value
the company, b. Provides dividends and tax benefits to
country, c. Generate products and services at a price
competitive to consumers; and d. Ease of execution
privatization ";
Verse (3): " Implementation of restructization as referred to in paragraph (1) fixed
pay attention to the cost and benefits acquired ";
4. Article 73: " Restructuring includes:
a. Sectoral restructuring whose implementation is adjusted to
sector policy and/or legislation-legislation regulations;
b. Corporate/corporate restructuring that includes:
1. Increased the increase of competitive effort, especially in the sector-
The sectors that contained monopolies, both regulated and
the natural monopoly;
2. functional relationship arrangement between the Government as
regulators and BUMN as venture entities, including at
it applications the enterprise governance principles
that is good and sets the course in order implementation
public service obligations;
42
3. internal restructuring that includes finance, organization/
management, operational, system, and procedure;
5. Section 74
Verse (1): "Privatisation is performed with intent to:
a. expand public ownership of the persero;
b. Increase the company's efficiency and productivity;
c. create a financial structure and financial management that
baik/kuat;
d. creating a healthy and competitive industrial structure;
e. creating a global saing and global-oriented persero;
f. growing the business climate, macroeconomic, and market capacity ";
Verse (2):" Privatization is done with the goal of improving performance and
the company added value and increased the role as well as the community
in the possession of the persero stock ";
6. Article 75: "Privatization is done with regard to principles
tranparance, independence, accountability, and
of the header";
7. Article 76
Verse (1): " The privatized Persero must at least meet
criteria:
a. The industrial/industrial business is competitive; or
b. Fast-changing business/business sectors are changed ";
Verse (2):"Parts of Pesero's assets or activities that carry out
general service obligations and/or those based on invite-
invite activities The effort must be done by the BUMN, it can
be separated for inclusion in the company's establishment
for next if it is necessary to be privatized;"
8. Article 77: " The unprivatizedPersero is:
43
a. Persero in the field of action
laws can only be managed by BUMN;
b. Persero moving in the business sector related to
state defense and security;
c. The persero that moves in certain sectors by the government
is given a special task to carry out certain activities that
relates to the public interest;
d. Persero moving in the field of natural resources endeavour
expressly under the banned laws
to be privatized ";
9. Article 78: "Privatisation is implemented in the manner of:
a. share sales based on the capital market provisions;
b. stock sales directly to investors;
c. Stock sales to management and/or employees who
are concerned ";
10. Article 79
Verse (1): "To discuss and decide policies on privatization
with respect to the cross-sectoral policy, the Government is shaping
a privatisation committee as a coordination container";
Verse (2): "The privatisation committee is headed by the Coordinating Coordinating Minister
the economy with members, namely the Minister, Finance Minister, and
Technical minister where the persero is doing business activities";
Verse (3): "The membership of the privatisation committee as referred to in paragraph (2)
is specified by the Presidential Decree";
11. Article 80
Verse (1): "The privatization committee is responsible for:
a. formulating and setting general policy and requirements
implementation of privatization;
b. set the necessary steps to streamline
privatization process;
44
c. discuss and provide a way out of the problem
srategis arising in the privatization process, including
relate to Government sectoral policies ";
Verse (2): " The privatisation committee in carrying out its duties as
referred to in paragraph (1) may invite, request input,
and/or help the government agency or any other party is viewed
needs ";
Verse (3): "The chairman of the privatisation committee regularly reports the development
implementation of its duties to the President";
12. Article 81: "In implementing privatization, the Minister served for:
a. Drafting an annual program of privatization;
b. submitted an annual program privatization to the privatization committee
to obtain a directive;
c. carry out privatization ";
13. Article 82
paragraph (1): "Privatization must be preceded by the selection of the company's top selection-
the company and bases on the criteria specified in
government regulations";
Verse (2): " Against selected companies and meeting criteria
has been determined, after being recommended by the Minister
Finance, further socialized to the public as well as
consults to the People's Representative Council ";
14. Article 83: "Further provisions on the Privatization system are set up with
government regulations";
15. Article 84: "Any person and/or legal entity with potential
conflicts of interest are prohibited from being involved in the privatization process";
45
16. Section 85
Verse (1): "Related parties in the program and the privatization process
are required to keep the privacy of information obtained
throughout the information is not open";
Verse (2): "Breach against the provisions as referred to in paragraph
(1) is sanctioned in accordance with the laws";
17. Article 86
Verse (1): "The result of privatization by means of sale of state-owned shares
directly to the country's coffers";
Verse (2): "Further provisions on the manner of Privatization dispersal
are set with government regulations";
[3.12] Draw that after carefully examining the controls
The applicant about the loss The constitutional rights associated with
provisions in the a quo Act, including the evidence
attached to support the applicant's control, have been real that:
The loss of constitutional rights The applicant as set forth in Article 33
paragraph (2) and paragraph (3) of the Constitution 1945 The basis of submission for
is not harmed by the enactment of Article 1 of 11 and the number 12,
Article 72 of the paragraph (1), paragraph (2), and paragraph (3), Section 73, Section 74 of the paragraph (1) and paragraph (2),
Article 75, Section 76 verse (1) and paragraph (2), Section 77, Section 78, Section 79 of the paragraph (1),
paragraph (2), and paragraph (3), paragraph (2), paragraph (2), paragraph (2), and paragraph (3), Section 81, Article
82, Section 83, Section 84, Section 85 of the paragraph (1) and paragraph (2), as well as Section 86 of the paragraph (1)
and paragraph (2) Act 19/2003, both actual and potential;
Otherwise, by the enactment of the a quo which is mohoned
its pronunciation instead protects and guarantees the constitutional rights of the applicant.
According to the Court, the provisions of Article 33 of the Constitution of 1945 do not reject privatization,
provided that privatization does not negate State control c.q. Government,
to be the main determinate of venture policy in the production branch that
is important for the country and/or mastering the lives of many people. Article 33
46
The 1945 Constitution also does not reject the idea of a competition among the attempted perpetrators,
provided that the competition does not negate its control by the State that
includes the power to set up (regelendaad), taking care (bestuursdaad),
managing (beheersdaad), and supervising (toezichthoudensdaad) branch-
branch production that is essential for the country and/or mastering the living hajat
the person is much to people ' s greatest purpose of prosperity (vide Pudisconnect
Court, Perkara Number 002 /PUU-I/2003). Similarly, " Privatization is
sales of persero shares, in order to increase performance and value
companies, magnize the benefits for the country and society, as well
expand ownership of shares by society " (Article 1 of 12 Act 19/2003);
[3.13] weighed that, in accordance with the provisions of Article 39 of the paragraph (2) Act MK juncto Section 11 of the paragraph (2) of the Rules of the Court of Contitle Number 06 /PMK/2005 on the Pleading Guidelines in the Pleasance Act Testing Act (next called PMK 06/2005), on The court dated December 22, 2008 The applicant has been advised to correct his application with the intent to make a quo eligible as Article 51 paragraph (1) of the MK Act as well as the terms of the constitutional losses as has been a jurisprudence of the Court. However, the applicant did not also successfully meet these conditions. Accordingly, in accordance with the provisions of Article 28 of the paragraph (4) of the MK juncto section 11 paragraph (5) PMK 06/2005, in the hearing of January 15, 2009 the Panel of Judges notified the applicant that it would report the results of a a quo plea to the Plenary Meeting of the Judges (later called RPH) for the next process (vide News Event Pertrial January 15, 2009);
[3.14] Draw that terms as in paragraph [3.13] at For not being fulfilled by the applicant, then RPH decides not to hear the caption The People's Representative Council and the President (Government);
[3.15] Secretary that the applicant and his application do not meet the terms of the loss as referred to by Article 51 of the paragraph (1) and the paragraph (2) of the MK Act, so the applicant is not has a legal standing. Therefore, The court does not need to examine and consider further the subject of the plea;
47
4. KONKLUSI
Based on all facts and legal considerations as
described above, the Court concluded:
[4.1] The constitutional right of the applicant as an Indonesian citizen
is not harmed by the Article 1 and number 12, Section 72
paragraph (1), paragraph (2), paragraph (2), paragraph (3), Section 73, Section 74 of paragraph (1) and paragraph (2),
Article 75, Section 76 of the paragraph (1) and paragraph (2), Section 77, Section 78, Section 79 of the paragraph
(1), paragraph (2), and paragraph (2), paragraph (2), paragraph (2), paragraph (2), paragraph (2), paragraph (2), paragraph (2), (3), Section 80 of the paragraph (1), paragraph (2), and paragraph (3), Article
81, Section 82, Section 83, Article 84, Section 85 of the paragraph (1) and paragraph (2), and
Section 86 of the paragraph (1) and paragraph (2) of the Law No. 19 of 2003
on the State Owned Entity;
[4.2] The applicant is not eligible legal standing as intended
Section 51 of the paragraph (1) and paragraph (2) Act Number 24 of 2003
about the Constitutional Court;
5. AMAR RULING
By recalling the Basic Law of the Republic of Indonesia
in 1945 and Article 56 of the paragraph (1) Act No. 24 of 2003 on
Constitutional Court (State Gazette of the Republic of Indonesia in 2003) Number
98, Additional State Sheet Republic Indonesia Number 4316);
Prosecute,
Declaring the applicant is not acceptable.
So it was decided in a Consultative Meeting of the Constitutional Court
which attended by eight Constitutional Judges on Tuesday, the twenty
month January of the year two thousand nine, that is Moh. Mahfud MD, Abdul Mukthie
Fadjar, M. Akil Mochtar, M. Arsyad Sanusi, Muhammad Alim, Maruarar Siahaan,
Maria Farida Indrati, and Achmad Sodiki, and spoken in the Plenary Session
48
open to the public on Friday thirty January of the second year
thousand nine by our seven Constitutional Judges, namely Abdul Mukthie Fadjar, as
The Chair of the Assembly is a Member of the Assembly, M. Akil Mochtar, M. Arsyad Sanusi, Muhammad
Alim, Maruarar Siahaan, Maria Farida Indrati, and Achmad Sodiki, respectively
as Members, with accompanied by Alfius Ngatrin as Panitera
Replacement, attended by the applicant, respectively, The Government and/or the representing, Council
The People ' s Representative and/or the representative.
CHAIRMAN OF THE TRIAL,
ttd.
Abdul Mukthie Fadjar
MEMBERS,
ttd.
M. Akil Mochtar
ttd.
M. Arsyad Sanusi
ttd.
Muhammad Alim
ttd.
Maruarar Siahaan
ttd.
Maria Farida Indrati
ttd.
Achmad Sodiki
PANITERA REPLACEMENT,
ttd.
Alfius Ngatrin