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House of Representatives Begins Discussing State Finance Bill, Focusing on PNBP and KND Clusters

September 16, 2026

The House of Representatives, particularly Commission XI, has taken further steps to tidy up the rules for managing state funds through the State Finance Bill. The omnibus law method was used to focus the discussion on two crucial areas: Non-Tax State Revenue (PNBP) and Segregated State Wealth (KND). This step was not just a routine legal formality, but a response to major structural changes in Indonesia’s financial governance.

One of the main triggers is the establishment of the Danantara Investment Management Agency (BPI). The establishment of this new entity has automatically altered the role of the Minister of Finance and the way State-Owned Enterprises (SOEs) are managed. Previously, dividends from state-owned companies were allocated directly to the state budget as PNBP. However, under the new structure, dividend management and reinvestment flows have shifted. The incompatibility between the old law, which still refers to the Minister of Finance as an SOE shareholder, and the new Danantara rules could create a legal vacuum.

At the same time, the potential of PNBP from other sectors, such as natural resource management and public service tariffs, is also considered to be underutilised. Experts and observers have emphasised the necessity for a more sophisticated and adaptable tariff scheme, such as incorporating environmental externalities in the natural resources sector, or the option of implementing taxes on sudden profits (windfall profits). The House of Representatives has expressed its intention to ensure that non-tax state revenues can be collected optimally without hindering the flexibility of the business world.

The decision by the House of Representatives to adopt the omnibus law scheme is widely regarded as the most pragmatic approach to take. Rather than revising the State Finance Law, the State Treasury Law, the PNBP Law and the KND Law one by one separately, which is a time-consuming process, all these regulations are now synchronised at once under one legal umbrella. This restructuring is essential to ensure that there are no contradictions in the rules that could create loopholes or uncertainty for industry players and SOEs.

For the business world, this discussion must be thoroughly scrutinised by natural resource companies and renewable energy developers, as well as service users of ministries and institutions subject to PNBP rates, and state-owned business partners. Should expert proposals be accommodated, solar, wind and bioenergy projects could face a new PNBP scheme, while windfall profit will affect projected cash flows as commodity prices rise. It is recommended that companies map out ongoing PNBP liabilities, test the sensitivity of the project’s financial model, and monitor the draft bill once it is published.

If the discussion of this bill is completed according to the target before the next state budget cycle runs, Indonesia will have a much more modern state financial governance system. The distinction between the roles of ministries, investment management agencies and state revenue rights will become clearer. Ultimately, it is anticipated that this legal certainty will contribute to the preservation of the state budget while also facilitating the ongoing development of SOEs.

By Tommy Hendharto Oetomo – Managing Partner