Persero

Persero is a designation used in Indonesia for state-owned enterprises that operate as limited liability companies. The term is short for perusahaan perseroan terbatas and is typically reflected in the company’s name, such as PT Bank Negara Indonesia (Persero) Tbk or PT Telkom Indonesia (Persero) Tbk. The designation signals government ownership, generally with the state holding a controlling stake, though some Persero also trade on public stock markets with varying degrees of private shareholding.

The legal basis for Persero status lies in Indonesia’s corporate and state-owned enterprise framework, where the government uses Persero to organize and manage strategic businesses that require public accountability and professional governance. Persero companies are expected to operate commercially while fulfilling public policy goals. They usually have a board of directors and commissioners, and profits may be distributed as dividends to the state and, in some cases, to public shareholders if the company is listed on the stock exchange.

Historically, many Indonesian state-owned enterprises began as government-run corporations (Perusahaan Negara) and were reorganized into Perseroan Terbatas with government ownership to improve efficiency and governance. Over time, some Persero have been partially privatized or listed on the Jakarta Stock Exchange, while retaining majority government ownership. Key sectors include finance, telecommunications, energy, and infrastructure, with examples such as Bank Mandiri (Persero) Tbk, BRI (Persero) Tbk, Telkom (Persero) Tbk, and PLN (Persero) for the electricity sector.

In contemporary practice, Persero continues to denote state involvement in a company while aligning with market-oriented corporate structures. The term helps distinguish government-backed enterprises from fully private firms and highlights the state’s role in strategic industries.