Main Article Content
This paper intends to analyze the legal aspects of SOE holding formation, including legislation relating to the establishment of SOE holding, the legal politics that underpin SOE holding policies, and the legal basis and normative implications. The method used is doctrinal research, with a literature study on the legal material laws and regulations in Indonesia. Data are collected by library research, and the analysis data uses deductive. The conclusion is 1) that the challenges in forming BUMN holding in Indonesia are the authority to form a holding, corporate development, efficiency, monopoly potential, spending of control, and the independence of BUMN management; 2) The legal politics of BUMN holding is based on the values that develop in the community to achieve the objectives of the state by Pancasila and the 1945 Constitution; 3) SOE Holding after the issuance of PP No. 72 of 2016 the status of a subsidiary of holding is no longer an SOE but a Limited Liability Company. A shift in the state capital in the form of shares to a holding company in which the claims of a subsidiary previously owned by the state have shifted to being owned by a state-owned company which is made a holding company; 4) The government still has control over the BUMN holding subsidiary through holding whose capital is controlled by the state through the holding Board of Directors and its subsidiary is still elected by the government. So, the government still controls the holding and its subsidiaries.