The position of state-owned enterprises: Towards a health sector super holding company paradigm
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Abstract
Purpose: In Indonesia, the State-Owned Enterprises holding in the healthcare sector operates under the mandate of Article 33 of the 1945 Constitution, consisting of two main holding companies: PT. Bio Farma (Persero), which includes PT Kimia Farma, PT Indofarma, and PT Inuki, as well as Pertamedika IHC that manages SOE hospitals nationwide. The overlap in business activities between PT. Bio Farma and Pertamedika IHC suggests the potential for establishing a super healthcare holding.
Method: This research, conducted normatively, evaluates the principles and legal norms for creating such a super holding, referencing the legislative framework and Constitutional Court decisions.
Result: The proposed super holding would adopt a modern corporate structure led by a Chief Executive Officer, akin to Temasek in Singapore or Khazanah in Malaysia. The establishment of a super healthcare holding company involves PT. Bio Farma with its 410 healthcare clinics and Pertamedika IHC as the parent holding of SOE hospitals, which manages 75 hospitals and 143 healthcare clinics throughout Indonesia.
Conclusion: However, legal challenges, including the state's financial status and the legal relationships between parent and subsidiary companies, necessitate amendments to Law No. 19 of 2003 on SOEs to provide a stronger legal foundation for the formation of the super holding.
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