Accountability of SOE directors for losses post the third amendment to the SOE Law

The recent enactment of Law No. 1 of 2025 introduces significant changes to the State-Owned Enterprises (SOE) Law, especially regarding the accountability of SOE directors. One of the key highlights is the clearer application of the Business Judgement Rule (BJR), which protects directors from being held personally liable for business losses-as long as they manage the company responsibly and in good faith.

In this article, Dentons HPRP lawyers, Giovanni Mofsol Muhammad (Partner) and Salwa Azzahra Fadilah (Associate) explain how the 2025 SOE Law affects the status of SOE assets and losses, and what directors must prove to be protected under the BJR. Their insights offer practical understanding for those involved in managing or advising SOEs, especially when navigating the risk of loss and legal responsibility.

Read the full article here (English | Indonesia).

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