Regionally Owned Enterprises (BUMD), Legal Entities, Characteristics,
Functions and Purposes of Establishing BUMD | Business Motivation
Success | Online business - Hallo Dear, elisa-head.blogspot.com, This article that you read this time with the title Regionally Owned Enterprises (BUMD), Legal Entities, Characteristics,
Functions and Purposes of Establishing BUMD | Business Motivation
Success | Online business, We have prepared this article well for you to read and retrieve the information in it. hopefully the contents of we write can be understood by you. Alright, happy reading.
Title : Regionally Owned Enterprises (BUMD), Legal Entities, Characteristics,
Functions and Purposes of Establishing BUMD | Business Motivation
Success | Online business
link : Regionally Owned Enterprises (BUMD), Legal Entities, Characteristics,
Functions and Purposes of Establishing BUMD | Business Motivation
Success | Online business
Regionally Owned Enterprises (BUMD), Legal Entities, Characteristics, Functions and Purposes of Establishing BUMD | Business Motivation Success | Online business
[ad_1]
Regionally Owned Enterprises (BUMD) is a business entity established by the regional government whose capital is most / wholly owned by the regional government. BUMD based on the target category consists of 2 (two) groups, namely regional companies to serve the public interest and regional companies for the purpose of increasing regional revenue. The purpose of the establishment of the Regional Owned Enterprises is to carry out regional development through services to the community, the implementation of public benefits and increasing regional income.
Legal Basis for Regional-Owned Enterprises (BUMD) Judging from the existing legal products BUMD has been formed based on Law Number 5 of 1962 concerning Regional Enterprises, which is strengthened by Law Number 4 of 1974 concerning the Principles of Regional Government. Article 177 of Law Number 32 Year 2004 concerning Regional Government states that regional governments can have BUMDs whose formation, merger, transfer of ownership, and / or dissolution are determined by regional regulations based on statutory regulations. Regional companies were established with regional regulations under the authority of Law Number 5 of 1962.
Regional company is a legal entity whose position as a legal entity is obtained by the enactment of the said regional regulation, the regional regulation shall come into force after being approved by the supervisor's institution. Law Number 32 of 2004 does not use a nomenclature of establishment but establishment. The establishment of regional companies themselves do not have a strong legal umbrella. Only stated in several laws and government regulations. Article 75 Government Regulation Number 58 of 2005 concerning Regional Financial Management states that the participation of regional government capital can be implemented if the amount to be included in the fiscal year regarding has been determined in the regional regulation concerning the participation of regional capital in respect.
 |
| img by slideshare.net |
Government Regulation Number 58 Year 2005 This does not explain how the establishment or formation of a Regionally Owned Enterprise (BUMD) is clear and detailed. If the legal entity is Perusda (Regional Public Company), the establishment of Regionally Owned Enterprises (BUMD) must follow Law Number 5 of 1962 concerning Regional Enterprises. So Perusda does not need a notary deed. Furthermore, the regional government established a regional regulation regarding capital participation in the said regional company. Meanwhile, if a Regionally Owned Enterprise (BUMD) is incorporated as a PT (Limited Liability Company), related to its establishment, it must follow Law Number 40 of 2007 concerning Limited Liability Companies.
One of the objectives of establishing BUMD is to improve public services that can be provided by local governments using a business approach. Although BUMD was formed to seek profit, but without having to eliminate aspects of public service. BUMD does not get competition from private investment because the business sectors it runs require large capital and investment payback periods that require a very long time.
Equity participation in BUMD is part of regional long-term investment, the accumulative amount of which is presented in the balance sheet on the asset side. In its budgeting, capital investments or investments are not recognized as expenditures, but are included as financing expenditures. On the other hand, the results received from investments that have been made are categorized as Local Revenue (PAD). Therefore, the general APBD (KUA) policy will contain information about this income and financing.
The characteristics of regionally-owned enterprises (BUMD)
- The government holds the rights to all wealth and business.
- The government is domiciled in the capital of the company.
- The government has the authority and power in setting company policies.
- Supervision is carried out as a complement to the authorized countries.
- Serve the interests of the general public, in addition to seeking profits.
- As a stasbilisator of the economy in order to realize the welfare of the people.
- As a source of state and regional income (regional original income).
- All or most of the capital belongs to the regional government, and is separated wealth.
- Capital can be in the form of shares or bonds for companies that go public.
- Can collect funds from other parties, both banks and non-banks.
- The Directors are fully responsible for the BUMD, and represent BUD in court.
Function and role of BUMD
- Implement local government policies in the economic and development fields.
- Fertilizing funds for development financing.
- Encourage community participation in the business sector.
- Fulfill goods and services for the benefit of the community
The Purpose of Establishing a Regionally Owned Enterprise (BUMD)
- Contribute to the national economy and state and regional treasury revenues.
- Chasing and looking for profit.
- Fulfilling the lives of many people.
- Pioneering business activities.
- Provide assistance and protection to small and weak businesses.
- Serve the needs of people in the area.
- Obtain benefits that will be used for development in the region.
Examples of BUMD include Regional Development Banks (BPD), Regional Water Companies (PDAMs), Regional City Angkot Companies (City Buses), etc.
Based on research conducted by Ir. Purwadi, there are at least 11 common problems owned by BUMD, that is
There are several things that underlie the establishment of a BUMD include:
1) Economic reasons, namely as a step to optimize the economic potential in the region in an effort to explore and develop regional resources, provide public services (public services) and seek profit (provit motive).
2) Strategic reasons, namely establishing business institutions that serve the public interest, which the public or other private parties are not able to (yet) be able to do, either because of enormous investments, enormous business risks, and very large and extensive externalities.
3) Budget reasons, namely as an effort to look for other sources of income other than taxes, user fees and balance funds from the Central Government to support the implementation of government functions in the regions.
BUMD Capital and Wealth
As a company, BUMD also has capital and wealth, namely:
1) BUMD capital consists of all or part of the separated assets of the Regional Government.
2) BUMD capital which consists entirely of the assets of one Regional Government which is separated does not consist of shares.
3) If the BUMD's capital consists of the assets of several Governments, the BUMD's authorized capital consists of shares.
4) BUMD capital which is partly owned by the assets of the separated Regional Government and the wealth of other parties that are not Regional Government, the BUMD's capital consists of shares.
5) All liquide devices are stored in a bank designated by the relevant Regional Head based on the instructions of the Minister of Finance. Then Article 8 of Law Number 5 of 1962 states that on BUMD capital consisting of shares, the shares consist of priority shares and ordinary shares. Priority shares are shares that can only be owned by the Regional Government, while for ordinary shares can be owned by the Regional Government and and private parties or other legal entities that are shareholders in a BUMD.
Regionally Owned Enterprises (BUMD) is a business entity established by the regional government whose capital is most / wholly owned by the regional government. BUMD based on the target category consists of 2 (two) groups, namely regional companies to serve the public interest and regional companies for the purpose of increasing regional revenue. The purpose of the establishment of the Regional Owned Enterprises is to carry out regional development through services to the community, the implementation of public benefits and increasing regional income.
Legal Basis for Regional-Owned Enterprises (BUMD) Judging from the existing legal products BUMD has been formed based on Law Number 5 of 1962 concerning Regional Enterprises, which is strengthened by Law Number 4 of 1974 concerning the Principles of Regional Government. Article 177 of Law Number 32 Year 2004 concerning Regional Government states that regional governments can have BUMDs whose formation, merger, transfer of ownership, and / or dissolution are determined by regional regulations based on statutory regulations. Regional companies were established with regional regulations under the authority of Law Number 5 of 1962.
Regional company is a legal entity whose position as a legal entity is obtained by the enactment of the said regional regulation, the regional regulation shall come into force after being approved by the supervisor's institution. Law Number 32 of 2004 does not use a nomenclature of establishment but establishment. The establishment of regional companies themselves do not have a strong legal umbrella. Only stated in several laws and government regulations. Article 75 Government Regulation Number 58 of 2005 concerning Regional Financial Management states that the participation of regional government capital can be implemented if the amount to be included in the fiscal year regarding has been determined in the regional regulation concerning the participation of regional capital in respect.
|
| img by slideshare.net |
Government Regulation Number 58 Year 2005 This does not explain how the establishment or formation of a Regionally Owned Enterprise (BUMD) is clear and detailed. If the legal entity is Perusda (Regional Public Company), the establishment of Regionally Owned Enterprises (BUMD) must follow Law Number 5 of 1962 concerning Regional Enterprises. So Perusda does not need a notary deed. Furthermore, the regional government established a regional regulation regarding capital participation in the said regional company. Meanwhile, if a Regionally Owned Enterprise (BUMD) is incorporated as a PT (Limited Liability Company), related to its establishment, it must follow Law Number 40 of 2007 concerning Limited Liability Companies.
One of the objectives of establishing BUMD is to improve public services that can be provided by local governments using a business approach. Although BUMD was formed to seek profit, but without having to eliminate aspects of public service. BUMD does not get competition from private investment because the business sectors it runs require large capital and investment payback periods that require a very long time.
Equity participation in BUMD is part of regional long-term investment, the accumulative amount of which is presented in the balance sheet on the asset side. In its budgeting, capital investments or investments are not recognized as expenditures, but are included as financing expenditures. On the other hand, the results received from investments that have been made are categorized as Local Revenue (PAD). Therefore, the general APBD (KUA) policy will contain information about this income and financing.
The characteristics of regionally-owned enterprises (BUMD)
- The government holds the rights to all wealth and business.
- The government is domiciled in the capital of the company.
- The government has the authority and power in setting company policies.
- Supervision is carried out as a complement to the authorized countries.
- Serve the interests of the general public, in addition to seeking profits.
- As a stasbilisator of the economy in order to realize the welfare of the people.
- As a source of state and regional income (regional original income).
- All or most of the capital belongs to the regional government, and is separated wealth.
- Capital can be in the form of shares or bonds for companies that go public.
- Can collect funds from other parties, both banks and non-banks.
- The Directors are fully responsible for the BUMD, and represent BUD in court.
Function and role of BUMD
- Implement local government policies in the economic and development fields.
- Fertilizing funds for development financing.
- Encourage community participation in the business sector.
- Fulfill goods and services for the benefit of the community
The Purpose of Establishing a Regionally Owned Enterprise (BUMD)
- Contribute to the national economy and state and regional treasury revenues.
- Chasing and looking for profit.
- Fulfilling the lives of many people.
- Pioneering business activities.
- Provide assistance and protection to small and weak businesses.
- Serve the needs of people in the area.
- Obtain benefits that will be used for development in the region.
Examples of BUMD include Regional Development Banks (BPD), Regional Water Companies (PDAMs), Regional City Angkot Companies (City Buses), etc.
Based on research conducted by Ir. Purwadi, there are at least 11 common problems owned by BUMD, that is
There are several things that underlie the establishment of a BUMD include:
1) Economic reasons, namely as a step to optimize the economic potential in the region in an effort to explore and develop regional resources, provide public services (public services) and seek profit (provit motive).
2) Strategic reasons, namely establishing business institutions that serve the public interest, which the public or other private parties are not able to (yet) be able to do, either because of enormous investments, enormous business risks, and very large and extensive externalities.
3) Budget reasons, namely as an effort to look for other sources of income other than taxes, user fees and balance funds from the Central Government to support the implementation of government functions in the regions.
BUMD Capital and Wealth
As a company, BUMD also has capital and wealth, namely:
1) BUMD capital consists of all or part of the separated assets of the Regional Government.
2) BUMD capital which consists entirely of the assets of one Regional Government which is separated does not consist of shares.
3) If the BUMD's capital consists of the assets of several Governments, the BUMD's authorized capital consists of shares.
4) BUMD capital which is partly owned by the assets of the separated Regional Government and the wealth of other parties that are not Regional Government, the BUMD's capital consists of shares.
5) All liquide devices are stored in a bank designated by the relevant Regional Head based on the instructions of the Minister of Finance. Then Article 8 of Law Number 5 of 1962 states that on BUMD capital consisting of shares, the shares consist of priority shares and ordinary shares. Priority shares are shares that can only be owned by the Regional Government, while for ordinary shares can be owned by the Regional Government and and private parties or other legal entities that are shareholders in a BUMD.
[ad_2]
Thus the article Regionally Owned Enterprises (BUMD), Legal Entities, Characteristics, Functions and Purposes of Establishing BUMD | Business Motivation Success | Online business
You are now reading the article Regionally Owned Enterprises (BUMD), Legal Entities, Characteristics, Functions and Purposes of Establishing BUMD | Business Motivation Success | Online business with the link address https://elisa-head.blogspot.com/2019/10/regionally-owned-enterprises-bumd-legal_11.html