PP No 13_98_Perum (english)

8/7/2019 PP No 13_98_Perum (english)

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PUBLIC CORPORATIONS (PERUM)

(Government Regulation No. 13/1998, dated January 17, 1998)

THE PRESIDENT OF THE REPUBLIC OF INDONESIA

Considering :

a. that the economic development and world trade have brought about everincreasing trade competition so that it is deemed necessary to take several

measures to step up PERUMs competitive power and business development;

b. that in the context of stepping up competitive power and business developmentit is deemed necessary to emphasize more extensive autonomy in the

management of PERUM under its control;

c. that to this end, it is deemed necessary to improve provisions on PERUMthrough a Government Regulation;

In view of :

1. Article 5, paragraph (2), and Article 33 of the 1945 Constitution;2. Indonesian Corporate Code (Statute Book of 1927 No. 4191 as amended and

supplemented, lastly by Law No. 12/1955 (Statute Book of 1955 No. 49,

Supplement to Statute Book No. 850);

3. Law No. 9/1969 on the Stipulation of Government Regulation SubstitutingLaw No.1/1969 (Statute Book of 1969 No. 16, Supplement to Statute Book No.

1890) on Types of State Corporation, which becomes a Law (Statute Book of

1969 No. 40, Supplement to Statute Book No. 2904);

DECIDES:

To stipulate :

GOVERNMENT REGULATION ON PUBLIC CORPORATION (PERUM)


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CHAPTER 1

GENERAL PROVISIONS

Article 1

In this Government Regulation, what is meant by :

1. Public Corporation, hereinafter referred to as PERUM, is a State-ownedcorporation as stipulated in Law No. 9/1969, the entire capital of which is

owned by the State, in the form of State assets which are separated and notdivided into shares.

2. Minister of Finance is the Minister representing the government in everyparticipation of State assets, which shall be separated for inclusion in

PERUMN.

3. Board of Directors is PERUMs organ, responsible for PERUMs managementin the interests and objectives of PERUM and representing PERUM in or out

of court.

4. Supervisory Board is PERUMs organ which supervises and advises the Boardof Directors in carrying out PERUMs operational management.

5. Minister is the Minister whose scope of duties and authority embracesPERUMs field of business.

Article 2

1. PERUMs purposes and objectives are to run business aiming at publicinterests in the form of providing goods and/or services of good quality and

concurrently seeking profits by virtue of corporate management principles.

2. To support the financing of operations in the context of obtaining its purposeand objectives as intended in paragraph (1), with the Finance Ministers

approval, PERUM can perform certain business activities relevant to its

business field and/or take part in capital participation in other business

corporations.


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3. The certain business activities meant in paragraph (2) shall be arranged by theMinister of Finance.

Article 3

(1)The Finance Minister shall administer every administration of State capitalparticipation in PERUM.

(2)The Finance Minister shall stipulate policy for developing PERUMs business,and delegates authority for daily implementation of his policy to the Minister.

(3)The policy intended in paragraph (2) shall be stipulated in accordance with thepurpose and objectives of the PERUMs concerned.

(4)For developing the PERUM as indicated in paragraph (3), the Finance Ministerand the Minister can meet at anytime as deemed necessary.

(5)The administering of State capital participation as meant in paragraph (1) andthe policy for developing business as meant in paragraph (2) shall be exerted

by the Director General for the Development of State-Owned Corporations.

Article 4

The Finance Minister and/or the Minister are/is responsible for all the

consequences of legal actions taken by PERUM and for PERUMs losses which

exceed the value of the State assets separated and put into PERUM, unless :

a. The Finance Minister and/or the Minister with ill will directly or indirectlytake/takes advantages from PERUM in their/his own personal interests

exclusively.

b. The Finance Minister and/or the Minister are/is involved in illegal actionstaken by PERUM; or

c. The Finance Minister and/or the Minister are/is directly or indirectlymake/makes use of PERUMs assets against the law.


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Article 5

PERUM shall be domiciled in the territory of the Republic of Indonesia which

shall be stipulated in the Articles of Association.

Article 6

PERUM shall be established for a period of time stipulated in the Articles of

Association.

CHAPTER II

ESTABLISHMENT AND ARTICLES OF ASSOCIATION

First Part

Establishment

Article 7

PERUM shall be established by virtue of a Government Regulation

Article 8

The Government Regulation indicated in Article 7, shall at least contain :

a. stipulation of PERUMs establishment;b. stipulation of the value of the State assets which are separated for participation

in PERUMs capital;

c. PERUMs Articles of Association;d. Appointment of the Finance Minister as representative of the government and

delegation of authority by the Finance Minister to the Minister in

implementating the daily development of PERUM as intended in Article 3,

paragraph (2).


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Article 9

(1)Every amendment to the participation of the State capital as meant in article 8shall be stipulated in a Government Regulation;

(2)The amendment of the State capital as indicated in paragraph (1) coversaddition and deduction of the participation of the State capital.

Second PartArticles of Association

Article 10

The Articles of Association contains at least :

a. name and domicile of PERUMb. purpose and objectives and line of business of PERUM;c. life time of PERUM;d. structure and number of Board of Directors, of Supervisory Board;e. stipulation of procedures for holding meetings of board of Directors, of

Supervisory board of Board of Directors and/or Supervisory Board with the

Finance Minister and the Minister.

Article 11

(1)Amendment to Articles of Association shall be stipulated in a GovernmentRegulation.

(2)The amendment to Articles of Association as meant in paragraph (1) comesinto effect as form the date of stipulation of Government Regulation on

Amendment to PERUMs Articles of Association.


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Article 12

(1)The issuing of obligations in the context of recruiting public funds by PERUMshall be stipulated in a Government Regulation.

(2)PERUM shall inform of its plan for issuing obligations as meant in paragraph(1) to certain creditors.

Article 13

(1)The deduction of participation of the State capital by PERUM which recruitspublic funds as meant in Article 12, paragraph (1), shall be notified to the

creditors before it is stipulated in a Government Regulation in conformity with

the provisions of Article 9.

(2)The deduction of capital participation as intended in paragraph (1) shall notinflict third partys interests.

CHAPTER III

USING PROFITS

Article 14

(1)Every fiscal year, PERUM shall put aside a certain amount from its net profitsfor reserves of objectives, depreciations, and other reasonable reductions.

(2)45% of the balance of the amount set aside from the net profits as meant inparagraph (1) shall be used for :

a. general reserve until it reaches at least twice of the subcribed scapital;b. social and educational funds;c. returns of production;d. contribution for pension funds; ande. donation and contribution for indemnity


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(3)The percentage of distribution of PERUMs net profits as meant in paragraph(2) shall further be stipulated by the Minister of Finance.

Article 15

(1)The whole net profits, after deduction is made from the amount set aside asintended in Article 14, shall be disbursed as Overall Development Funds.

(2)The Overall Development Funds, which the State is entitled to, shall be paid tothe States General Treasurer soon after the Annual Report is ratified inaccordance with the provisions stipulated in this Government Regulation.

CHAPTER IV

BOARD OF DIRECTORS

Article 16

(1)The management of PERUM is carried out by the Board of Directors.(2)The members of the Board of Directors are 5 (five) persons, one which is

designated as President Director.

(3)The adding of the members of the Board of Directors exceeding the number ofDirectors as indicated in paragraph (2), shall be carried out with approval from

the President.

(4)Those capable of being appointed as Directors are individuals meeting thecriteria of expertise, integrity, leadership, experience and good conduct, with

dedication to develop business for the progress of the corporation.

(5)In addition to the conditions indicated in paragraph (4), those capable of beingappointed as Directors are individuals who are qualified to take legal actions

and who have never been declared bankrupt or who once became members of

Board of Directors, Commissioners of Supervisory Board, who were declared

guilty, and who caused a corporation or PERUM to have been declared

bankrupt.


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Article 17

(1)Members of the Board of Directors shall be appointed and release by theMinister of Finance by virtue of recommendation from the Minister.

(2)Members of the Board of the Directors shall be appointed for 5 (five)yearsterms of office, and can be re-appointed.

Article 18

(1)The Finance Minister after learning from the Ministers opinion, can dischargea member of the Board of Directors before termination of his terms of office, if

based on facts, the member of the Board of Directors :

a. does not perform his duties well;b. does not implement the provisions contained in the legislations and/or the

provisions stipulated in the Regulation on the Establishment of PERUM;

c. is involved in an action inflicting PERUM;d. is sentenced into imprisonment because of committing crime and/or

mistakes in relation to the management of the corporation.

(2)The Decision on the Discharge as meant in paragraph (1) shall be made afterthe person concerned is given opportunity to defend himself.

(3)With the Decision as meant in paragraph (2), his position as a member ofBoard of Directors terminates.

Article 19

(1)The regulation on the job description and authority of a member of Board ofDirectors and the amount and kinds of remuneration of the Board of Directors,

is stipulated by the Finance Minister.

(2)The Finance Ministers authority as intended in paragraph (1) can be delegatedto the Minister.


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Article 20

The Board of Directors is fully responsible for PERUMs management in the

interests and objectives of PERUM, and represent PERUM in and out of court.

Article 21

(1)Every member of the Board of Directors reserve the right to representPERUM, unless otherwise stipulated in the Articles of Association.

(2)A member of the Board of Directors is not authorized to represent PERUM, if :a. there is a lawsuit before the court between PERUM and the member of the

Board of Directors himself;

b. the member of the Board of Directors has an interest contrary to PERUMsinterest.

(3)In the Articles of Association, the person who reserves the right to representPERUM shall be stipulated, whenever a situation as intended in paragraph (2)

prevails.

(4)In case the Articles of Association do not stipulate the provisions indicated inparagraph (3), the Minister of Finance shall represent PERUM.

Article 22

(1)In performing its duties, the Board of Directors shall pay full attention anddevotion to the duties, obligations and achievement of PERUMs objectives.

(2)A member of the Board of Directors is forbidden to hold another position asmentioned below :

a. President Director ar Director of a State-Owned Corporation, a RegionalGovernment-Owned Corporation, a private company or another position

relating to the management of a company.


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b. another structural and functional position in an institution/agency of thecentral and regional governments.

c. another position as stipulated in the Regulation on the Establishment ofPERUM an in the legislations in force.

Article 23

The Board of Directors shall maintain minutes of meeting and PERUMs

accounting records.

Article 24

Procedures of sales, transfers of ownership, or imposition on PERUMs fixed

assets, the receiving of middle/long term loans and the granting of loans through

whatever kinds of forms and methods without seeking repayments, and the writing

off of accounts receivable and stock of goods by PERUM from its accounting

records, shall be stipulated by Minister of Finance.

Article 25

(1)The Board of Directors can only submit a request to the District Court for thedeclaration of PERUMs bankruptcy with approval from the Minister of

Finance.

(2)If bankruptcy occurs because of the Board of Directors mistakes or negligenceand PERUMs assets fail to overcome the possibility resulting from the

bankruptcy, every member of the Board of Directors shall be mutually

responsible for the losses.

(3)Members of the Board of Directors who can prove that the bankruptcy is notdue to their faults or negligence, are not mutually responsible for the losses.


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Article 26

(1)The Board of Directors shall prepare a Long Term Plan which constitutes astrategic plan containing PERUM;s targets and objectives to be obtained in a 5

(five) year period.

(2)The long term plan as intended in paragraph (1) shall at least contain :a. evaluation of implementation of the previous Long Term Plan;b. PERUMs present position;c. the assumptions used in preparing the Long Term Plan;d. stipulation of the targets, strategy, policies and work program of the Long

Term Plan.

(3)The Design of the Long Term Plan already signed jointly with by thesupervisory Board shall be submitted to the Minister of Finance through the

Minister for legalization.

(4)The legalization by the Finance Minister as indicated in paragraph (3) shall becarried out after being discussed jointly with the Minister.

(5)The form, contents and procedure for the preparation of the Long Term Plan asarranged in paragraphs (1) and (2) shall be stipulated by the Finance Minister.

Article 27

(1)The Board of Directors shall prepare a Work Plan and Corporate Budget as theannual specifications of the Long Term Plan.

(2)The Work Plan and The Corporate Budget shall be submitted to the FinanceMinister through the Minister, at the latest 60 (sixty) days before the start of

the fiscal year, for legalization.

(3)The Work Plan or Corporate Budget concerned shall be legalized by theFinance Minister at the latest 30 (thirty) days after the start of the fiscal year.

(4)In case the Work Plan and Corporate Budget have not yet been legalized asindicated in paragraph (2), the Work Plan and Corporate Budget shall be


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considered lawful for implementation as far as they meet the provisions on the

procedures for preparation of the Work Plan and Corporate Budget.

(5)The authority of legalizing the Work Plan and Corporate Budget as meant inparagraph (2) can be delegated by the Finance Minister to the Minister.

(6)The form, content and procedure for preparing the Work plan and CorporateBudget shall be stipulated by the Finance Minister.

Article 28

Within 5 (five) months after the closing of PERUMs fiscal year, the Board of

Directors shall submit an annual report to the Finance Minister and the Minister,

which contains at least :

a. annual calculation consisting of balance sheet of the pre fiscal year andcalculation of profit/loss of current fiscal year and explanation of the

documents concerned;

b. report on PERUMs situation and performance and the results achieved;c. PERUMs main activities and amendments during fiscal year;d. specifications of problems arising during fiscal year which affect PERUMs

operations;

e. names of Board of Directors and Supervisory Board.f. salaries and other allowances of the Board of Directors and Supervisory Board.

Article 29

(1)The Annual Report shall be signed by all members of the Board of Directorsand the Supervisory Board, and shall be submitted to the Finance Minister and

the Minister.

(2)If one or more members of the Board of Directors or Supervisory Boarddoes/do not sign the annual report as meant in paragraph (1), the reasons shall

be mentioned in writing.


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Article 30

(1)The annual calculation shall be made in accordance with the FinanceAccountancy Standard.

(2)If the Finance Accountancy Standard as meant in paragraph (1) cannot beimplemented properly, the explanation and reasons shall be mentioned in

writing.

Article 31

(1)The Board of Directors shall submit the annual calculation to the SupervisoryBody of Financial and Development Affairs (BPKP) or Public Accountant

designated by the BPKP for auditing purposes.

(2)For PERUM which recruits public funds, the audit of annual calculation shallbe carried out by Public Accountant.

(3)The report on the results of audit by public accountant as meant in paragraphs(1) and (2), shall be submitted in writing to the Finance Minister for

legalization.

(4)In case the obligation as meant in paragraphs (1) and (2) is not met, thelegalization of the annual calculation cannot be carried out.

(5)The annual calculation as meant in paragraphs (1) and (2) after receiving alegalization from the Finance Minister, shall be announced in daily

newspapers.

Article 32

(1)The approval of annual report and legalization of annual calculation shall begiven by the Finance Minister.

(2)In case the documents of annual calculation prepared turn out to be incorrectand/or misleading, the members of the Board of Directors and Supervisory

Board are mutually responsible for the mistakes to the inflicted party.


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(3)The members of the Board of Directors and Supervisory Board are freed fromthe responsibility as meant in paragraph (2) if the mistakes proved to havent

been due them.

Article 33

The Board of Directors shall submit regular reports to the Supervisory Board, with

copies to tha Finance Minister and the Minister.

CHAPTER V

THE SUPERVISORY BOARD

Article 34

(1)In every PERUM a Supervisory Board shall be set up.(2)The Supervisory Board with good faith and full responsibility shall perform

their duties in the interests and objectives of PERUM.

Article 35

The Supervisory Board is in charge of exerting supervision over PERUMs

management by the Board of Directors including the implementation of the Work

Plan and Corporate Budget, the provisions in the Regulation on PERUMs

Establishment, the policies stipulated by the Finance Minister and the guidelines

prepared by the Minister in the context of elaborating those policies, the

provisions of the legialations in force, and giving advices to the Board of Directors

in the implementation of PERUMs management.

Article 36

(1)The Supervisory Board in performing their duties shall :


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a. give opinion and suggestions to the Minister and Finance Ministerregarding the Work Plan and Corporate Budget proposed by the Board of

Directors.

b. follow PERUMs development, give opinion and suggestions to theMinister and Finance Minister corncerning every problem deemed

necessary for PERUMs management.

c. report immediately to the Minister and Finance Minister if there is aphenomenon of the decline of PERUMs performance.

d. carry out other supervisory duties stipulated in the Regulation on PERUMsEstablishment.

e. give advices to the Board of Directors in implementing PERUMsmanagement.

(2)The Supervisory Board shall report the implementation of their duties as meantin paragraph (1) to the Minister and Finance Minister periodically and at any

time if deemed necessary.

(3)The forms, contents and procedures for submitting the reports are stipulated bythe Finance Minister.

Article 37

Those capable of being appointed as members of Supervisory Board are

individuals who shall :

a. have dedication, know the problems of corporate management, and haveenough time to perform their duties; and

b. be qualified to take legal actions and have never been declared bankrupt orwho once becames members of Board of Directors, Commissioners or

Supervisory Board, who were declared guilty, and who caused a corporation or

PERUM to have been declared bankrupt.


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Article 38

PERUM Supervisory Board shall consist of officials from the technical

Department concerned, Finance Department and other Departments/institutions

whose activities are relevant to PERUM, or other officials proposed by the

Minister.

Article 39

(1)Members of the Supervisory Board shall be appointed and released by theFinance Minister by virtue of the Ministers recommendation.

(2)Members of the Supervisory Board shall be appointed for terms of officesimilar to the members of the Board of Directors, and can be re-appointed.

(3)The appointment of members of Supervisory shall not be simultaneous withthe members of the Board of Directors.

Article 40

The number of members of the Supervisory Board shall be adjusted to PERUMs

need, at least 2 (two) persons, and one of them shall be appointed as chairman of

the Supervisory Board.

Article 41

(1)the Finance Minister after learning from the Ministers opinion, can dischargea member of the Supervisory Board before termination of his terms of office, if

based on facts, the member of the Board of Directors :

a. does not perform his duties well;b. does not implement the provisions contained in the legislations and/or the

provisions stipulated in the Regulation on the Establishment of PERUM;

c. is involved in an actions inflicting PERUM; or


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d. is sentenced into imprisonment because of committing crime and/ormistakes in relation to the management of corporation.

(2)the decision on the discharge as meant in paragraph (1) shall be made after theperson concerned is given opportunity is defend himself.

(3)With the decision as meant in paragraph (2), his position as a member of theSupervisory Board terminates.

Article 42

(1)In performing their duties and obligations, PERUMs Supervisory Board havethe following authorities :

a. to examine the books, letters, and other documents, to examine the cash forverifying purposes and to examine PERUMs assets;

b. to enter the yard, building and office used by PERUM;c. to ask for explanations from the Board of Directors regarding all problems

relating to PERUMs management;

d. to ask the Board of Directors and/or other officials with the knowing of theboard of Directors to attend meetings of PERUMs Supervisory Board;

e. to attend the Board of Directors meetings and to give opinions on thematters under discussion.

f. by virtue of the Articles of Association, to give approval of assistance to theBoard of Directors in taking certain legal measures.

g. by virtue of the Articles of Association or the Resolution of JointDiscussion Meeting, to take PERUMs managerial measures in case the

board of Directors are not available.

h. to temporarily discharge the Board of Directors by mentioning the reasons.i. to do other things deemed necessary as arranged in PERUMs Articles of

Association.

(2)The procedures of temporarily releasing the Board of Directors as indicated inparagraph (1), letter h, shall be arranged further by the Finance Minister.


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Article 44

To help smoothen the implementation of the Supervisory Board, the Finance

Minister can appoint a secretary to the Supervisory Board at PERUMs expense.

Article 45

All the expenses required in the context of implementing of the SupervisoryBoards duties, shall be borne by PERUM and shall be stated clearly in the Work

Plan and Corporate Budget.

CHAPTER VI

INTERNAL SUPERVISORY UNIT

Article 46

(1)In every PERUM an Internal Supervisory Unit which is the corporationsInternal Supervisory Unit, shall be set up.

(2)The Internal Supervisory Unit as meant in paragraph (1) is lead by a Head whoreports to the President Director.

Article 47

(1)the Internal Supervisory Unit shall be in charge of assisting the PresidentDirector in the implementation of an internal examination of PERUMs finance

and operations and in the evaluation of PERUMs control, management and

performance, and in giving suggestions for improvement.


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(2)At a written request form the Supervisory Board, the Board of Directors givesexplanation on the results of the examination or the results of the implementing

duties of the Internal Supervisory Unit as meant in paragraph (1).

Article 48

The Board of Directors shall pay attention there to and shall soon take the

necessary steps to respond to the matters mentioned in every report on the results

of examination made by the Internal Supervisory Unit.

CHAPTER VII

OTHER PROVISIONS

Article 49

Procurements of goods and services using direct funds from the State Income and

Budget shall be carried out in accordance with the implementing provisions on the

State Income and Budget.

Article 50

Foreign loans shall be made by PERUM in comformity with the provisions in the

legislations in force.

Article 51

Except the management of PERUM itself, no other party shall get involved in the

management of PERUM.


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Article 52

All provisions on the echelonization of positions of government officials, do not

apply to PERUM.

Article 53

PERUMs employees are those whose appointment and termination for

employment, positions, rights and obligations, shall be stipulated on the basis ofemployment contracts in accordance with the legislations on manpower.

Article 54

In the context of solidifying PERUMs development and supervision,

a. the Minister shall hold a periodical meeting with the Finance Minister;b. the Minister and/or the Finance Minister shall, at any time deemed necessary,

ask for information from the Board of Directors and/or the Supervisory Board.

CHAPTER VIII

CLOSING

Article 55

With the enforcement of this Government Regulation,

a. Government Regulation No. 3/1983 on the Procedures for the Developmentand Supervisions of Public Service Agency (PERJAN), Public Corporation

(PERUM), and Limited Liability Company (PERSERO) (Statute Book of 1983

No. 3, Supplement to Statute Book No. 3246) as amended by Government

Regulation No. 28/1983 ( Statute Book of 1983 No. 37); and

b. The provisions in the regulations and legislations that are contrary to thisGovernment Regulation; are declared to be no longer in force.


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Article 56

This Government Regulation comes into effect as of the date of promulgation.

For public cognizance, this Government Regulation be promulgated by publishing

it in the Statute Book of the Republic of Indonesia.

Stipulated in Jakarta

on January 17, 1998

THE PRESIDENT OF THE REPUBLIC OF INDONESIA

Sgd

SOEHARTO

Promulgated in Jakarta

On January 17, 1998

THE MINISTER/STATE SECRETARY

sgd

MOERDIONO


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STATUTE BOOK OF THE REPUBLIC OF INDONESIA OF 1998 NO. 16

ELUCIDATIONOF INDONESIAN GOVERNMENT REGULATION NO. 13/1998

ON

PUBLIC CORPORATIONS (PERUM)

GENERAL

In line with the increase of the implementation of development and the

results achieved, the productivity and efficiency of the entire national economic

power needs to be re-stepped up, so that its role and contribution to the national

development can bring about an optimum result for the improvement of public

welfare.

In addition thereto, the global economic development has caused an ever

increasing market competition, so that it is deemed necessary to take concrete

steps for the improvement of national productivity and efficiency.

In accordance herewith, PERUM as a State Owned Corporation cannot be

excluded from the intended situation. On the grounds of the evaluation of the

results currently achieved, it is time for PERUM to be given a bigger chance to

develop its business to become a progressive and self supporting corporation in

order to give more contributions to the Indonesian economy.

ARTICLE AFTER ARTICLE

Article 1

Numbers 1 to 5

Sufficiently clear


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Article 2

paragraph (1)

Public Corporation is different from Limited Liability Corporation because

of its nature of business. PERUM's nature of business is more emphasized to serve

public interests, either by providing services or goods and services. Nevertheless,

as a corporation it is aimed at being self supporting, and to this end PERUM must

gain profits in order to survive.

paragraph (2)

With this provision PERUM can establish business cooperation with a joint

venture or another corporation, or set up a daughter company.

paragraph (3)

Sufficiently clear

Article 3

paragraph (1)

The Finance Minister administers the State assets that are set aside or

stipulated as PERUMs assets.

paragraphs (2) and (3)

As a business corporation the Finance Minister is highly interested in the

State assets invested in PERUM for being developed. To this end, the problem of


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investment, financing and utilizing PERUMs business gains, shall be clearly

formulated in the companys development policy.

The Finance Minister as manager of the State assets stipulates PERUMs

development policy which is aimed at determining the direction in obtaining the

companys objectives, either in relation to investment policy, business financing,

financial sources, utilization of companys business gains or other development

policies.

What is meant by daily Guidance, the authority of which is delegated by the

Finance Minister to the Minister, is an activity which provides guidelines forPERUMs operations to be implemented either by the Board of Directors or the

Supervisory Board on the grounds of the development policy stipulated by the

Finance Minister with the purpose of enabling the PERUM concerned to carry out

its duties and functions efficiently and to develop well.


Sufficiently clear

Articles 4 to 6

Sufficiently clear

Article 7

Government Regulation on the Establishment of PERUM also stipulates a

decision for participating State assets in PERUM,. With this provision, PERUM

receives a corporate status after the Government Regulation on the Establishment

of PERUM has come into effect.


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Article 8

Letter a

Sufficiently clear

Letter b

The setting aside of State assets for investment as PERUMs capital can bein the form of cash money or in another form, and its total or nominal value shall

be mentioned.

The setting aside of State assets for capital in a PERUM can be carried out

for :

- establishment of a PERUM;

- increasing a PERUMs capacity;- restructurization of PERUMs capital.

Letters c and d

Sufficiently clear

Article 9

paragraph (1)

b Sufficiently clear

paragraph (2)

With this provision, every additional participation of State assets in

PERUM, either that originating from the State Income and Budget or from other


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sources, such as capitalization of PERUMs reserves, needs to be stipulated in a

Government Regulation.

Article 10

Sufficiently clear

Article 11


Sufficiently clear

Article 12

paragraph (1)

Sufficiently clear

paragraph (2)

What is meant by a certain creditor is a bank or financing institution.

Article 13


Sufficiently clear


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Article 14

paragraph (1)

Depreciations in this provision exclude depreciations which belong to cost

components (depreciation and amortization). Depreciations here constitute the

difference between costs in the loss of value of an asset and the depreciation value

included in the cost components.

paragraph (2) and paragraph (3)

Sufficiently clear

Public Corporations (Perum)

(Government Regulation No. 13/1998, dated January 17, 1998)

Article 15


Sufficiently clear

Article 16

paragraph (1)

The management means the action of managing the PERUM in obtaining

the objectives of the corporation as a business company.

paragraph (2) to (5)

Sufficiently clear


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Article 17


Sufficiently clear

Article 18

paragraph (1)

Letter a

The meaning of does not perform his duties well includes a situation

where the said member of the Board of Directors turns out to have insufficient

qualifications in performing his tasks.

Letters b and c

Sufficiently clear

Letter d

The sentence to imprisonment must have a legal certainty.

paragraph (2)

Sufficiently clear


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paragraph (3)

If the person concerned doesnt use the opportunity as menat in paragraph

(2) in a given reasonable time, the decision remains to be made.

Article 19


Sufficiently clear

Article 20

Sufficiently clear

Article 21

paragraph (1)

The Articles of Association can stipulate the limitation of authority of

members of the Board of Directors in taking measures.

paragraphs (2) to (4)

Sufficiently clear

Article 22


Sufficiently clear


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Articles 23 and 24

Sufficiently clear

Article 25

paragraph (1)

Sufficiently clear

paragraph (2)

The Board of Directors mistakes and negligence meant in this paragraph

are for example those committed against the provisions in PERUMs Articles of

Association, which have been outlined by the Supervisory Board, the Finance

Minister or the Minister, and which have been legally proven. In this case the

process of proving it is carried out by the Minister and his/her apparatus. But,

whether the member of the Board of Directors concerned is quilty or not, shall be

determined on the basis of the judgement of the competent court.

paragraph (3)

Sufficiently clear

Article 26

paragraph (1)

A companys long term plan is highly needed to determine the 5 (five) year

long term direction which will serve as the Board of Directors guidelines in

managing the Company.


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paragraph (2)

The long term plan, beside containing evaluations of the previous Long

Term Plan, the assumptions used, and analysis to know the companys position,

shall also contain the companys target, policy strategy, and all the work programs

to achieve the intended target. Its important to note the relationship of all the

elements mentioned above so that the indicated strategy, policy and work

programs are clearly related to each other.

paragraph (3) to (5)

Sufficiently clear

Article 27

Sufficiently clear

Article 28

Sufficiently clear

Article 29


Sufficiently clear


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Article 30

paragraph (1)

By the Finance Accountancy Standard is meant the principles of

accountancy already jointly recognized and approved by the Indonesian

accountancy circles and the competent government agency.

paragraph (2)

Sufficiently clear

Article 31

paragraph (1)

The annual calculation shall be submitted only to the Supervosiry Body of

Financial and Development Affairs (BPKP) or Public Accountant appointed by

BPKP.

This provision elucidates the administrative elements encompassing

PERUM as a State-Owned Corporation. Since the administering of PERUM is

carried out by the Finance Minister, and in principle the Finance Minister

represents the government in PERUMs development and control, it is stipulated

that the audit of the annual calculation is to be executed only by the Supervisory

Body of Financial and Development Affairs (BPKP), which is a government

agency.


Sufficiently clear


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paragraph (3)

The annual calculation made shall reflect the actual situation of PERUM

assets, liabilities, capital and business gains, the Board of Directors and the

Supervisory Board are responsible for the correctness or PERUMs annual

calculation and annual report in general.

Article 33

What is meant by regular (periodical) reports are quarterly and semi annual

reports on the Companys performance.

Article 34


Sufficiently clear

Article 35

paragraph (1)

Supervision means the whole process of evaluating PERUMs management

in the achievement of its goal as a business company.


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Article 36

paragraph (1)

In principle the Supervisory Board must know PERUMs position and

condition, and report it to the Minister and Finance Minister supported by its

opinion, suggestions and assessment of the PERUM supervised by it.


Sufficiently clear

Article 37

Members of the Supervisory Board must know the ABC of management.

They must have sufficient time to carry out their duties both to attend meetings

and to visit locations on site.

Article 38

Sufficiently clear

Article 39

paragraph (1)

Sufficiently clear


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paragraph (2)

After termination of his terms of office, and based on a consideration

resulting from the results of evaluation on his performance, a member of the

Supervisory Board can be re-appointed, attention shall remain to be paid to the

provisions governing the nomination and appoinment of the Supervisory Board.

paragraph (3)

Sufficiently clear

Article 40

Sufficiently clear

Article 41

paragraph (1)

Letter a

The meaning of does not perform his duties well includes a situation

where the said member of the Supervisory Board turns out to have insufficient

qualifications in performing his tasks.

Letters b and c

Sufficiently clear


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Letter d

The sentence to imprisonment must have a legal certainty.

paragraph (2)

Sufficiently clear

paragraph (3)

If the person concerned is not present, the decision can be made without his

presence.

Article 42


Sufficiently clear

Article 43

Sufficiently clear

Article 44

The expert hired is only for a limited/certain period of time, not for the

Supervisory Boards entire terms of office.


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Article 45

For implementing the Supervisory Boards duties, a budget separated from

that for the Board of Directors is provided. This budget must be stipulated in the

Corporations Work Plan and Budget.

Article 46


Sufficiently clear

Article 47


Sufficiently clear

Article 48

All the findings by the Internal Supervisory Unit require a response so that

the problem does not become procrastinated, and in this connection the Board of

Directors must take a follow-up action in response to the report resulting from the

audit of the Internal Supervisory Unit.

Article 49

As far as PERUM receives funds allocation from the State Income and

Budget (APBN), PERUM must abide by the provisions on the implementation of

APBN. If PERUM uses its own funds or banking loans, PERUM need not abide

by the provisions on the APBNs implementation.


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Article 50

Sufficiently clear

Article 51

To enable the Board of Directors to manage PERUM by themselves

without any interference from without, there should not be any interference in

PERUMs management. Included in the notion of interference is an action ordirective which directly affects PERUMs management or the making of decisions

by the Board of Directors. This provision is aimed at confirming the self

supporting of PERUM as a business company in order to be capable of being

managed profesionally in accordance with its business objectives.

This also applies to Departments and other government agencies. Since the

needs for funds of Departments and other government institutions have been

arranged and stipulated exclusively, Departments/governmental agencies shall not

burden PERUM with all kinds of disbursements. On the other hand, PERUM is

not allowed to finance the spendings of Departments/governmental bodies in its

accounting records.

Article 52

Sufficiently clear

Article 53

With this provision, the regulations on employees welfare such as health,

accident and life insurance, and retirement funds are stipulated by PERUM, both

thorugh Jamsostek (Manpowers Social Guaranty) and pension funds.


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Article 54

The meetings indicated will be very useful to PERUM. Joint

Meetings/Discussions need to be held prior to approval of the Work Plan and

Company Budget and before approval of the Annual Report.

Letter b

This explanation is in the form of written or oral report.

Articles 55 and 56

Sufficiently clear

SUPPLEMENT TO STATUTE BOOK OF THE REPUBLIC OF

INDONESIA NO. 3732

PP No 13_98_Perum (english)

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