<![CDATA[This article evaluates the legal implications of the recent institutional transformation from the Ministry of State Owned Enterprises to the Regulatory Agency in Indonesia under Law Number 16 of 2025. Employing normative legal research alongside comparative analysis with Khazanah in Malaysia and Temasek in Singapore, this study dissects the persistent structural conflict between public regulatory functions and commercial ownership rights. Findings explicitly reveal that the new agency framework remains a superficial administrative illusion that completely fails to mitigate agency costs. By consolidating regulatory and shareholder powers within a single entity, the reform perpetuates corporate identity crises and severely undermines the Business Judgment Rule protections for state corporate directors. Consequently, to achieve genuine competitive neutrality and absolute managerial autonomy, this article proposes adopting a radical twin track model. This progressive framework necessitates delegating regulatory authority to technical ministries while permanently transferring commercial state ownership to a fully independent super holding company.]]>
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