Privatization of State Owned Enterprises in The Welfarestate Perspective

¹ Faculty of Law, University of 17 Agustus 1945, Jakarta, Indonesia
² Faculty of Law, University of 17 Agustus 1945, Jakarta, Indonesia

Abstract

This paper proposed an analytical study and investigation about State-owned enterprises (SOEs) privatization policy against welfare state perspective. Other than having an economic impact it also led to a constitutional polemic in Indonesia. So far, privatization of SOEs is considered as the best solution for SOEs to be more productive and efficient when handled by the private sector rather than controlled and managed by the state. However, the negative impact of privatization is not least disadvantageous for the state especially to the people where there are no guarantees and legitimacy from the state responsibility when SOEs has already profit oriented. This research would like to find a new concept of privatization of SOEs in accordance with the welfare state perspective. This research used a normative juridical legal research method. This method was chosen because the object was of norms and doctrines and legal principles related to the title of this research. The Author believes, Privatization has changed the social welfare schemes at as well as distorted the role and responsibilities of the state in realizing common prosperity. The conclusion is the Government should to review all regulations concerning the SOEs privatization and revoke regulations that are contrary to the welfare state principle in Indonesia.