REPUBLIKA.CO.ID, JAKARTA — President Prabowo Subianto officially launched Daya Anagata Nusantara Investment Management Agency (BPI Danantara) on Monday (24/2/2025). The institution is targeted to become one of the world's largest sovereign wealth funds (SWFs), with projected asset management reaching more than 900 billion US dollars or about IDR 14.611 trillion.
One of Danantara's main sources of funding comes from the assets of seven large State-Owned Enterprises (SOEs) that were consolidated to strengthen national strategic investments. The government is targeting an initial fund of 20 billion US dollars or about IDR 325 trillion, which will come from budget efficiency of the state budget and state-owned dividends.
In addition, Danantara's initial capital is projected to reach at least Rp 1,000 trillion, with funds raised gradually up to IDR 750 trillion from various internal sources of the country.
Paramadina University economist Wijayanto Samirin highlighted the importance of applying the Business Judgement Rule in Danantara operations. According to him, this approach will provide flexibility for SOEs to innovate and create fair competition with global investment institutions such as Temasek, GIC, and Khazanah, without compromising state interests.
However, he also reminded that with the business climate full of uncertainty, rampant corruption, and the frequent politicization of state-owned enterprises in Indonesia, there is a great risk that SOEs can be misused for certain interests. Therefore, establishing strong corporate governance (GCG) became a key step in anticipating such challenges.
“External oversight mechanisms should promote transparency, including in the selection of key figures, the drafting of regulations, and strategic decision-making. Let the people, the media, and civil society watch. Corrupters love darkness, so create light,” Samirin said in a written statement on Monday (24/2/2025).
He also reiterated the importance of internal oversight through strengthening the roles of supervisors, commissioners, audit committees, and internal audits. According to him, they should be filled by a professional figure with integrity and without political affiliation, as well as positioned as a strategic partner, not simply a complement.
“Merit system must be applied in selecting the best leaders for Danantara and BUMN. Indonesia has many professional and integrity individuals who can become cadres. If necessary, recruit experts from abroad to speed up progress. Concoism and nepotism, let alone the practice of choosing based on successful teams, should be avoided,” he added.
Samirin described SOEs as golden eggs whose future hangs on Danantara. “The government has decided to put these eggs in one basket called Danantara. If this basket is broken, then the future of 287 million Indonesians will be shaken. Therefore, Danantara must be managed as best as possible,” he said.
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