Monday, November 25, 2024

Danantara projected to become a new SOEs superholding

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Renold Rinaldi

Journalist

Editor

Interview

Minister of State-Owned Enterprises (SOEs) Erick Thohir has expressed his support for the establishment of the Daya Anagata Nusantara Investment Management Agency or BPI Danantara, a sovereign wealth fund which is projected to become the new SOEs Superholding.

Erick said that the birth of BPI Danantara is in line with the substance discussed in the SOEs Bill that has been rolled out in the last two years.

“If Danantara is in accordance with the SOEs Bill, the SOEs roadmap is indeed heading in that direction,” Erick said in Jakarta, on Thursday, November 8, 2024. 

“And I always say that it is about superholding, so don’t look at it negatively. The process is already underway,” he added.

Erick cited that Deputy Speaker of the House of Representatives (DPR), Sufmi Dasco Ahmad, has notified the Ministry of SOEs to fully support the formation of Danantara.

The presence of Danantara is expected to strengthen Indonesia’s position in the global investment arena through more integrated and efficient management of state assets.

Hikmahanto Juwana, Professor of law at the University of Indonesia, emphasized the importance of establishing an SOEs superholding with a strong legal basis. He said that the presence of a superholding, such as BPIDanantara, that centrally manages SOEs’ assets, requires independent regulations and prioritizes good corporate governance.

“This superholding needs to be regulated in a Law, similar to the law that regulates on the establishment of the Indonesia Investment Authority (INA),” Hikmahanto told Indonesia Business Post, while referring to the Indonesian investment management institution that also has an independent business mechanism and governance.

He expressed belief that an independent superholding model that is directly responsible to the President can strengthen SOEs amidst global competition.

“Superholdings, such as Temasek and Khazanah, really run businesses without dealing with ministries. This will allow SOEs to develop flexibly, professionally, and competitively,” he said.

Renold Rinaldi

Journalist

 

Editor

 

Interview

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