Danantara Is Set To Be Launched Tomorrow, Highlighting The Key Points Of The BPI In The State-Owned Enterprises Law

CNBC Indonesia/Muhammad Sabki

Danantara Is Set To Be Launched Tomorrow, Highlighting The Key Points Of The BPI In The State-Owned Enterprises Law

Tuesday, 25 Feb 2025

The President of the Republic of Indonesia, Prabowo Subianto, is set to launch the Investment Management Agency (BPI) Daya Anagata Nusantara (Danantara) on February 24, 2025. This agency will be responsible for managing all assets of State-Owned Enterprises (BUMN).

Danantara is also mentioned in the Draft Law (RUU) on BUMN, which was approved during the plenary session on February 4, 2025. According to the RUU concerning the authority over the management of BUMN, Article 3A states that the President, as the Head of Government, holds the power to manage BUMN as part of the government's authority in the realm of state financial management.

The authority referred to in paragraph (1) includes the ownership of state assets that are allocated to BUMN. In this context, paragraphs (1) and (2) empower the Minister, as the holder of series A shares, and the agency as the holder of series B shares in the investment holding and operational holding, representing the central government in the ownership of separated state assets.

The RUU on BUMN also addresses BPI Danantara in Article 3E, which states that in executing the management of BUMN, the President delegates some of his duties and authorities to the agency established by this law.

The agency referred to in paragraph (1) is a legal entity of Indonesia that is wholly owned by the Indonesian government. Its purpose is to enhance and optimize the investments and operations of BUMN and other funding sources.

The agency mentioned in paragraph (1) is accountable to the President. To ensure the contribution of dividends for investment management, the Minister appoints a representative to the agency, investment holding, and operational holding with the President's approval.

In Article 3F, Danantara is tasked with managing the dividends of BUMN. In carrying out this responsibility, Danantara oversees the dividends from the investment holding, operational holding, and BUMN.