Erick Thohir - previously Minister of State-Owned Enterprises (BUMN) - is now officially the Minister of Youth and Sports (Menpora) after being inaugurated at the State Palace, Jakarta, Wednesday (17/9/2025). The decision is contained in Presidential Decree Number 96P of 2025 on the Dismissal and Appointment of Ministers and Deputy Ministers of the Red and White Cabinet for the 2024-2029 Period.
The reading of the decision was carried out by the Deputy for Apparatus Administration of the Ministry of State Secretariat, Nanik Purwanti. "Erick Thohir as Minister of Youth and Sports," Nanik said, reading out the decision.
Erick Thohir replaced Dito Ariotedjo, who was removed from the Menpora position on Monday (8/9/2025).
In addition to Erick, President Prabowo Subianto also changed the composition of the cabinet. The President appointed Djamari Chaniago as Coordinating Minister for Political, Legal and Security Affairs (Menko Polhukam). This position was previously filled by Budi Gunawan - who was dismissed last week.
For the position of Deputy Minister, President Prabowo appointed Afriansyah Noor as Deputy Minister of Manpower, replacing Immanuel Ebenezer who was removed after being caught in a corruption case. In addition, the President appointed Farida Fariza as Deputy Minister of Cooperatives, previously occupied by Ferry Juliantono - now Minister of Cooperatives. The President also dismissed Sulaiman Umar from the position of Deputy Minister of Forestry and replaced him with Rachmat Mazuki.
In the presidential office, President Prabowo dismissed Hasan Nasbi from the position of Head of the Presidential Communication Office (PCO) and replaced him with Angga Raka Prabowo. And, now his position is named Head of the Government Communication Agency. In addition, AM Putranto, the President's Chief of Staff, was replaced by his deputy, M Qodari.
Not only inaugurating ministers and deputy ministers, the president also inaugurated agency heads and deputy agency heads, and other officials. For example, the President inaugurated Ahmad Dofiri as presidential advisor on Kamtibmas and police reform.
Nanik Sudaryati Deyang and Sonny Sanjaya were also appointed as Deputy Heads of BGN. President Prabowo also appointed Sarah Sadiqa as Head of the National Public Procurement Agency (LKPP).
Question.
Erick Thohir's appointment as Menpora has drawn public attention and question marks. This is because the seat of the Minister of SOEs is now vacant and it is not certain who will replace him. Meanwhile, SOEs are currently under the management of the Investment Management Agency (BPI) Daya Anagata Nusantara (Danantara).
Erick Thohir, after being removed from his seat by President Prabowo Subianto, admitted that he does not yet know who will replace him or who will become Acting Minister of SOEs.
"I have already said, there is an Acting (Minister of BUMN), later Mr. Minister of State Secretary (Prasetyo Hadi) will convey it," said Erick Thohir.
He also did not provide recommendations for a replacement name to be appointed as Acting Minister, including Deputy Minister of SOEs. Erick emphasized that the restructuring of the ministry is entirely under the president's authority.
"That is the president's prerogative," he continued.
Regarding the issue of the Ministry of SOEs being dissolved and merged with BPI Danantara, the politician with a business background also admitted that he did not know what would happen.
"I don't know (whether it will be merged)," said Erick.
Minister of State Secretary Prasetyo Hadi also opened his voice regarding the possibility of merging SOEs into BPI Danantara. He explained that BPI Danantara is currently still trying to improve management in a number of BUMNs. Even so, he did not dismiss the possibility of the merger.
"Danantara is also in the process of improving management and operations in our state-owned enterprises. Well, if there is a possibility that later in the journey we need to make changes to the ministry, we will see," Prasetyo explained.
As is known, there are three deputy ministers (wamen) in the Ministry of SOEs. They are Kartika Wirjoatmodjo, Aminuddin Ma'ruf, and Dony Oskaria. The position of Minister of SOEs is likely to be filled by one of the three names.
"Possibly from the Deputy Minister," he said.
Danantara's role
Meanwhile, economist and researcher from the Center for Strategic and International Studies (CSIS), Deni Friawan, believes that SOEs should be eliminated after the presence of Danantara.
"Most of the authority has been taken over by Danantara. So at that time CSIS had a media briefing, we captured that with the existence of Danantara, the functions of the Ministry of SOEs were practically almost non-existent," Deni explained.
If SOEs are merged with Danantara, according to Deni, there will be no significant impact on the Indonesian economy in the near future. However, one of the positive things obtained is the efficiency in the state budget.
"If there is no significant impact, I mean in the short term, yes. In one year, I don't think it will have much impact. But if for example it will be merged, at least it will be efficient. This means that there is no longer a need for financing at the Ministry of SOEs," he continued.
So, Deni also predicted that with the removal of Erick Thohir as Minister of SOEs, the Ministry of SOEs would be eliminated or merged with Danantara.
"I don't know whether it will be merged or not. My guess is that it will be merged. But I don't know when," he said.
The consolidation of SOEs into Danantara also simplifies all bureaucratic matters, with the hope that performance will improve. "So all SOEs are now accountable, all their affairs, are under Danantara. It's simpler, that's what I can say," said Deni.
Lucky
In contrast to Deni, Bank Permata Chief Economist Josua Pardede explained that Erick Thohir's change to Menpora does not change the institutional design of SOE management. SOEs are expected to continue running even though they are not headed by Erick Thohir.
"The President holds the power to manage BUMN, then delegates two different roles. Namely, the Ministry of SOEs as a policy formulator and supervisor, and Danantara as an SOE investment manager," Josua explained.
Danantara, according to Josua, is a state-owned legal entity tasked with managing SOE investments and operations. This includes managing dividends, providing loans, and forming investment holding and operational holding.
"However, the determination of the direction of share veto rights, and special assignments remains with the state through the Minister of BUMN. In other words, Danantara runs the management, while the Ministry of SOEs holds the policy steering wheel," he continued.
The pattern where the Ministry of SOEs holds 1% of series A shares with special rights, while 99% of series B shares are held by Danantara, is also said to provide positive benefits for the Indonesian economy.
Josua sees this as maintaining state control while providing flexibility in portfolio management in the hands of Danantara.
The impact on the economy, according to him, is potentially positive if implemented consistently. First, the unification of dividend and asset management can accelerate consolidation, efficiency, and strengthening of BUMN capital, so that investment spending is more focused and the results to the state treasury are more stable.
Secondly, the centralization of investment in Danantara is also considered to facilitate partnerships with investors in the long term for large projects.
However, Josua warned, there are also risks. Namely, overlapping decisions if the lines of policy and management are unclear, potential conflicts of interest if the door to supervision is weakened, and temporary disruptions in the transition period.
Meanwhile, economic observer at LPEM FEB UI Teuku Rifky believes that President Prabowo Subianto had many considerations before deciding to shift Erick Thohir's position from Minister of SOEs to Minister of Youth and Sports.
Erick Thohir already has a pretty good track record and is very familiar with the world of sports. Erick was also listed as the owner of Inter Milan football club in 2013-2019.
With his election as the new Menpora, Erick is expected to advance sports and empower youth.
"The government should not leave the position of Minister of BUMN empty because the Ministry of BUMN is also very important in the economy," Teuku told SUAR, in Jakarta (17/9).
He said that the Ministry of SOEs is a strategic ministry. For this reason, it should work separately, although there are rumors that the Ministry of SOEs will be merged into Danantara.
Indef economic observer Eko Listiyanto also believes that the Ministry of SOEs must remain a priority for the government, not leaving the position of Minister of SOEs vacant.
The basic function of SOEs must be remembered as organizing government affairs and assisting the president. "So the function of SOEs is still needed," said Eko.
Author: Gema Dzikri
