Trade and SOEs Commission VI of the House of Representatives raises concerns over the effectiveness of Danantara, a newly formed state-owned investment holding, in managing key national projects as the majority of its 21 priority projects remain entangled in financial, structural and business model issues that undermine its vision of stabilizing and optimizing state-owned assets.

“We observe that these projects have yet to address the root problems. The institutional transformation through Danantara, with its dual structure as both operational and investment holding, leaves fundamental questions unanswered,” Chair of Commission VI, Anggia Ermarini, said during a hearing with the Ministry of State-Owned Enterprises (SOEs) and Danantara at the Parliament Complex in Senayan, Jakarta, on Wednesday, July 23, 2025.

She warned that unclear lines of authority particularly in command structure and dividend management risk undermining the strategic coherence of SOEs. “This ambiguity complicates parliamentary oversight,” Anggia said.

Commission VI highlighted ongoing inefficiencies in projects such as the subsidized fertilizer scheme and State energy company Pertamina’s oil refinery operations, which face cost pressures due to currency disparities between input costs in U.S. dollars and domestic sales in rupiah.

“These issues require more than cosmetic changes. Without transformation in cost structure, human resource efficiency, and business model reform, the consolidation and merger process could lead to long-term fiscal liabilities,” Anggia cautioned.

“We don’t want this so-called superholding to become a burden in the future,” she added.

In response, Danantara CEO Rosan P. Roeslani cited that the entity’s core mandate is to consolidate and increase the value of state-owned assets through better investment management.

“Danantara was established to position Indonesia as a global force in strategic sectors,” Rosan said.

He confirmed that Danantara is authorized to manage dividends from operational holdings, which will be reinvested both in the investment holding and the SOEs themselves. The dual-holding structure has been approved by SOEs Minister Erick Thohir, Rosan added.

Addressing oversight concerns, Rosan emphasized that Danantara has established three oversight committees −Nomination and Remuneration, Ethics, and Audit − to ensure accountability in all aspects of its operations.

“These layered committees are embedded throughout Danantara’s organizational structure,” he said.