"We must review all of the rules first. We are preparing everything to make things clear."
Arief Kamaludin|KATADATA

SOE Minister Rini Soemarno's desire to establish holding companies for state-owned enterprises suddenly seems difficult to achieve. The problem is harmonising the sector regulations of each SOE to serve as the legal umbrella.

Justice and Human Rights Minister Yasonna Laoly said the government will address the problems associated with the establishment of SOE holding companies one by one. The goal is to come up with a policy that will not cause future problems.

The formation of SOE holding companiesis also being delayed by the in-depth studiesthat are being carried out, in particular with regard to legal aspects. These include regulations on the governance and establishment of these holdings, which will take quite some time.

"It is still in the early stages, everything is still being processed," Yasonna said after a coordination meeting on the matter at the Coordinating Ministry for Economic Affairs’ building in Jakarta, Thursday (18/8).(Read: Government Agrees to Form Six SOE Holdings)

Yasonna said he had not signed the Government Regulation (PP) on the establishment of SOE holding companies because the rules were still being reviewed. Meanwhile, matters related to the transfer of assets, he said, were still being discussed by Finance Minister Sri Mulyani.

At the same venue, the Finance Ministry's Director General of State Wealth Vincentius Sonny Loho said the government is synchronising the legal aspects of relevant rules. Because of the constraints, the government cannot say when exactly when they will start the establishment of state-owned holding companies.

Sonny added that the government still needs to promote the idea of SOE holding companies to a number of relevant parties, covering matters of workforce, asset harmonisation, and other aspects that the government still needs discuss.

"We must review all of the rules first. We are preparing everything to make things clear," Sonny said. "Everything must be cleared first, otherwise it will be troublesome for the president."(Read: Economic Committee Worries SOE Holding May Lead to Cartel Practices)

Although there are still many problems to be solved, Sonny said the government will continue drafting a government regulation (PP) on SOE holding companies. There is no intention to cancel the plan. The government does not need the House of Representatives' (DPR) approval to establish SOE holding companies, although the House must be kept up to date.

Previously, one problem was that holding companies were not mentioned in Government Regulation No. 44/2005 on the Administration Procedures for State Capital Investment and Administration of SOEs and Limited Companies. To that end, SOE Minister Rini Soemarno said her ministry is calling for a revision of this regulation by adding additional clauses.

"We are waiting for one, Government Regulation 44. We are asking for additional clauses on how to establish holdings," Rini said on 11 July. (Read: Holding Establishment, Widodo: By 2019 SOE Investment will Reach IDR 764 Trillion)

In a closed cabinet meeting on Friday (12/8), President Joko Widodo approved Rini's proposal to establish six holding companies based on business sectors; namely mining, oil and gas, housing, toll roads, the financial services, and food.

Pertamina will be the holding company for SOEs from the oil and gas sector. In the mining sector, Indonesia Asahan Aluminium (Inalum) will be the holding company. Bulog will be the holding company for SOEs operating in the food sector and Danareksa will be the holding company for financial services SOEs, including state banks.

Perum Perumnas will be a holding company for housing SOEs and Hutama Karya will lead state-owned highway construction companies. Minister Rini had said that she wants the holding companies to be established this year.