President Prabowo Subianto launched the Daya Anagata Nusantara Investment Management Agency (BPI Danantara) on Monday, February 24, 2025 amidst pros and cons in the society.
"Today, on Monday, February 24, 2025, I, the President of the Republic of Indonesia, signed Law No. 1/2025 on The third amendment to Law No. 19/2003 on State-Owned Enterprises and Government Regulation No. 10/2025 on The organization and governance of the Daya Anagata Nusantara investment management agency," Prabowo said.
He also signed Presidential Decree No. 30/2025 on The appointment of the Supervisory Board and Executive Board of the investment management agency.
BPI Danantara is the second sovereign wealth fund of Indonesia after the Indonesian Investment Authority. It is projected to be a global investment firm like Malaysia's Khazanah or Singapore's Temasek.
BPI Danantara was officially established after the Bill on State-Owned Enterprises (SOEs) was passed into Law in the Plenary Session of the House of Representatives (DPR) on February 2, 2025. In its initial stage, the agency will manage seven large SOEs in Indonesia, namely Bank Mandiri, Bank Rakyat Indonesia, Bank Nasional Indonesia, State energy company PT Pertamina, State power utility company PT PLN, State telecommunications company PT Telkom and State mining holding company MIND ID.
Prabowo revealed that Danantara's initial funding is projected to reach US$20 billion (Rp326 trillion). Meanwhile, the initial evaluation of this agency reached more than US$900 billion (Rp14,710 trillion) of Assets Under Management (AUM).
Prabowo said earlier on February 13, 2025 that the establishment of Danantara would be a transformative step as the government plans to start about 15 to 20 projects worth billions of dollars, which will create significant added value for the country,
Danantara is therefore expected to be the driving force of the Indonesian economy faster than before, including to pursue the target of 8 percent economic growth.
On the same occasion, President Prabowo announced former presidents Susilo Bambang Yudhoyono (SBY) and Joko “Jokowi” Widodo as members of the Advisory Board of Danantara.
Previously, Prabowo appointed Erick Thohir, Minister of SOEs as Chairman of the Supervisory Board of Danantara and former Deputy Central Bank (BI) Governor Muliaman D. Hadad as his deputy. Other Supervisory Board members include Minister of Finance Sri Mulyani Indrawati, National Police Chief General Listyo Sigit Prabowo, Attorney General ST Burhanuddin, the Corruption Eradication Commission (KPK), the Supreme Audit Agency (BPK), the Development Finance Controller (BPKP), and the Financial Transaction Reports and Analysis Center (PPATK).
Rosan Roeslani, who is also Minister of Investment/Head of the Investment Coordinating Board (BKPM), is appointed as Chief Executive Officer of Danantara, while Deputy SOEs Minister Dony Oskaria is appointed as Chief Operational Officer of Danantara and businessman Pandu Sjahrir as Chief of Investment Officer of Danantara.
In addition, Danantara will also have the Advisory Board and Oversight & Accountability Committee that will involve global-scale advisors, including Sir Anthony Charles Lynton Blair (Tony Blair) of the United Kingdom.
Criticism
Arif Mirdjaja, an economic-political observer, assessed that Danantara is a form of capital centralism that has the potential to become a safe haven for corruption.
He said that Danantara was established based on the third revision of Law No. 19/2003 on SOEs, which stipulates that SOEs losses are no longer considered State losses.
"There are at least two things that are of concern. First, is the centralization of capital… And between that, if it can be said, it is like putting all the eggs in one basket, if the basket falls, then all the eggs will break," Arif said as quoted by SindoNews, on Monday, February 24, 2025.
He cited that centralization of capital through SOEs would only result in loss of regional/area access to capital distribution.
Arif said further that this condition clearly weakens regional bargaining both in the management of important branches of production and further weakens the function of regional control over the center in the principles of democracy.
He also warned of huge potential for corruption, especially in the revision of the SOEs Law, which stipulates that SOEs losses are no longer considered state losses.
“This is a form of impunity for potential corruptors because Danantara is clearly a new safe haven for corruption that is legitimized by law. This condition will have a very bad impact, hopefully there will be mitigation and litigation efforts so that the two big concerns can be avoided," he said.
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