Do you know what a Public Company is or commonly called Perum?
If not, don’t worry!
Many of us may be familiar with the various forms of business entities, but not so much with this term.
In this article, we will have an in-depth discussion on Perum in detail starting from its characteristics, purpose, as well as its differences with other business entities.
You will get a clear picture of the important role of Perum in our country’s economy.
Check out this article until the end!
What is Perum or Public Company?
Perum or Public Company is one of the forms of state-owned enterprises (BUMN) that has the aim of providing anything needed by the community at large.
Unlike private companies that generally focus on profits, Perum is tasked with serving the public interest while still considering commercial aspects.
The government owns 100% of the shares in Perum, which means that ownership is entirely in the hands of the state.
By law, the Perum business form is regulated in Law Number 19 Year 2003 on State-Owned Enterprises (BUMN).
This law explains that Perum is an SOE whose entire capital is owned by the state and is not divided into shares.
In addition, the main activity of Perum is to provide goods or services for the public interest with professional management principles.
With this legal basis, Perum runs its business activities for the public interest, but is still expected to make a profit.
That way, Perum has a big responsibility in supporting the economy.
What are the Characteristics of Perum?
Perum has several characteristics that distinguish it from other forms of business entities.
The following are some of the main characteristics of Perum:
1. Ownership by the State
As mentioned earlier, the entire capital and ownership of Perum Perum is under the control of the state.
2. Provision of Services in the Public Interest
Perum has a function to serve the needs of the community, ranging from goods to services.
3. Social and Economic Oriented
Although its purpose is to serve the public, Perum is still allowed to generate profits from its business activities.
4. No Share Distribution
Since all ownership is held by the state, Perum shares are not sold to other parties, including the private or public sector.
Read also: Get to know more about Limited Liability Company (PT)
What is the Purpose of Perum?
The main purpose of establishing a Perum is to provide services and goods needed by society at large.
For example, in the water supply, electricity, or public transportation sectors, Perum plays an important role in ensuring that people receive decent and affordable services.
In addition, it is also expected to support government policies in terms of economic and social development.
In other words, Perum Perum does not only work for profit, but also contributes to advancing the welfare of society.
What are the advantages of Perum?
As a state-owned enterprise, Perum has several advantages that make it different from private companies.
Here are some of the advantages that Perum has:
1. Capital Certainty
Since the entire capital comes from the state, Perum does not have to worry about funding.
This provides stability in running its business activities.
2. Focus on Public Service
It is oriented towards community service, so it has a great social responsibility.
This makes it more humane than a company that focuses entirely on profit.
3. Not Dependent on Investors
Since all of its capital is owned by the state, Perum does not need to think about pressure from external investors.
4. Play a Role in National Development
Perum Perum contributes directly to national development, whether in terms of infrastructure, economy, or social.
What is the Difference between Perjan, Perum, Persero, and PT?
You may also be wondering, what is the difference between Perjan, Perum, Persero, and PT?
Well, here’s the explanation:
1. Perjan (Perusahaan Jawatan)
Perjan is a state enterprise whose entire management is directly under the control of the government.
Profit is not the main objective of Perjan, but full public service.
However, the Perjan business form has ceased to exist since the enactment of Law No. 19/2003 on State-Owned Enterprises (BUMN).
In this law, Perjan was abolished and replaced by other forms of state-owned enterprises, such as Perum and Persero, which are more flexible in carrying out operations and financial management.
The abolition of Perjan aims to improve efficiency and professionalism in the management of state-owned companies.
2. Perum (Public Company)
Perum is also fully state-owned, but the difference is that Perum remains profit-oriented despite its main purpose being public services.
3. Persero
Persero is a state-owned enterprise in the form of a PT, where most of the shares belong to the state.
However, some can be sold to the public.
This form of business entity is more focused on profit than Perum.
4. PT (Limited Liability Company)
PT is a business entity whose ownership can be owned by anyone, both individuals and companies, and aims to generate maximum profit.
Read also: Characteristics of BUMD Why is it Important to Know?
Where did the capital come from?
Perum’s capital comes entirely from the state, either through direct equity participation or other sources based on the law.
Unlike PTs that can obtain capital from the sale of shares to the public, Perums do not do this.
This stable capital allows them to focus on business development that is oriented towards the public interest.
What is an Example of a Public Company?
Some examples of companies with Perum status in Indonesia include:
1. Perum BULOG (Badan Urusan Logistik)
Perum BULOG is a state-owned company tasked with managing national food reserves, especially rice.
BULOG is responsible for maintaining food price stability, distribution, and ensuring food availability for the people of Indonesia.
2. Perum Perhutani
Perum Perhutani is a public company that manages state forest areas in Java and Madura.
Perhutani is tasked with managing, conserving and sustainably utilizing forest products, including the production of timber and other forest products.
3. Perum Damri (Djawatan Angkoetan Motor Republik Indonesia)
Perum Damri is a public company engaged in land transportation.
This public company provides inter-city bus, intra-city bus, airport bus, and logistics transportation services throughout Indonesia.
4. Perum Jasa Tirta
Perum Jasa Tirta is tasked with managing water resources in major river basins in Indonesia.
The company plays a role in clean water management, irrigation, and hydropower generation, as well as maintaining the water environment and conserving water resources.
5. Pawnshop Corporation
Perum Pegadaian is a company engaged in finance, particularly in pawn services.
Pegadaian provides loans secured by valuables and offers other financial products such as gold investment and savings services.
These companies are part of State-Owned Enterprises (SOEs) engaged in various sectors important to the interests of society and the state.
So, that’s the answer to what is Perum or Public Company to the provision of real examples in the country.
So, have you got the hang of it?
KH Contact
Understanding the various forms of business entities such as Public Companies (Perum) is essential for every entrepreneur. This helps in meeting the needs of the community at large and complying with applicable regulations. If you need assistance in company establishment or legal consultation, Kontrak Hukum is here to help.
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