Definition of BUMN, Functions of BUMN and Form of BUMN (Complete)

Definition of BUMN, Functions of BUMN and Form of BUMN (Complete) – BUMN is an abbreviation for State-Owned Enterprises, we often hear about BUMN but sometimes we don't know what BUMN really is? Now, let's talk about SOEs.

Definition of BUMN, Functions of BUMN and Form of BUMN (Complete)

Often we expect to work in a state-owned company because a state-owned company is a state-owned company, so if you work in a state-owned company, you feel very proud, don't you. For those who don't understand SOEs, here we will discuss everything so it must be listened to carefully so that they can understand well about SOEs.

Definition of BUMN

BUMN is an abbreviation of State-Owned Enterprises, where business entities are wholly and also most of their capital is owned by the state which has been through a statement directly originating from separated state assets (Based on the Law of the Republic of Indonesia No 2003).

Where BUMN is one of the economic actors in the national economic system, as well as private business entities or BUMS and also cooperatives. SOEs have their origins in contributing to the Indonesian economy and play a role in producing various types of goods and services that can realize the welfare of the people.

Where SOEs are located in various sectors, among others, the agricultural sector, the forestry sector, the plantation sector, the agricultural sector, finance, manufacturing sector, mining sector, transportation sector, electricity sector, trade sector and also the construction.

SOE function

BUMN has several functions and also roles, for more details what are the functions of BUMN we will discuss below.

1. Where as a provider of economic goods and services that are not provided by private companies
2. Which is a government tool in managing economic policy
3. Which has a function as a manager of the production branches of natural resources for many people
4. As a service provider for the needs of the community
5. Has a function as a producer of goods and services to meet the needs of many people
6. As a pioneer in business sectors that are not yet in demand by the private sector
7. Has a function in creating job opportunities
8. Become a foreign exchange earner
9. As well as having a function as an assistant in developing small cooperative businesses
10. As a driving force for community activities in various business fields

SOE form

BUMN itself has various types and also various forms which have been based on the Law of the Republic of Indonesia No. 19 of the year 2003 concerning BUMN in which BUMN consists of two forms, including a company business entity (Persero) and also a general business entity (perum). To be more clear, let's discuss below.

1. Company Business Entity (Persero)

The company's business entity (Persero) is a BUMN formed by a limited liability company whose capital is divided into all shares or also at least 51% where the shares are owned by the Republic of Indonesia where the main goal is to pursue profit.

The Purpose and Objectives of the Company's Business Entity (Persero)

1. Providing goods and services of high quality and very strong power
2. Pursuing profit in order to increase the value of the business entity

Example of a corporate entity (Persero)

1. PT Pertamina
2. PT Kimia Farma Tbk
3. PT Bank BNI Tbk
4. PT Kereta Api Indonesia
5. PT Jamsostek
6. PT Change Development
7. PT Garuda Indonesia
8. PT Telekomunikasi Indonesia
9. PT Tin Mining

2. General Business Entity (Perum)

A general business entity (Perum) is a state-owned enterprise whose entire capital is owned by the state and is not divided into shares. Where the general business entity has the purpose and also the objective that is supported according to the approval of the minister is to make capital participation in other businesses.

The Purpose and Objectives of a Public Business Entity (Perum)

And carry out a business that has the aim of providing public benefit in the form of a provider of goods and also suitable services quality at a price that can also be reached by the community according to the principles of managing business entities that are healthy.

Example of a General Business Entity (Perum)

1. Perum Damri
2. Pawnshops
3. BULOG
4. Public Library
5. The Republic of Indonesia Money Printing Corporation (Peruri)
6. Intermediate Company
7. Perumnas
8. Jasatirta Public Corporation

A few explanations have been given regarding knowledge about Definition of BUMN, Functions of BUMN and Form of BUMN (Complete), where BUMN is a State-Owned Enterprise which is divided into two forms and also has various functions. Hope it's useful

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