By: Jodi Mahendra)*
Indonesia officially launched the Daya Anagata Nusantara Investment Management Agency (Danantara), a strategic investment institution that aims to manage state assets efficiently and transparently. With the potential for asset management reaching more than USD 900 billion or around IDR 14,670 trillion, Danantara is expected to become a main pillar in driving sustainable national economic growth.
This step is part of a major transformation in the management of State-Owned Enterprises (BUMN) and the government’s strategy to face global economic challenges and attract healthy and accountable long-term investment.
The establishment of Danantara is a response to the need for structural reform in the management of state-owned enterprises. The Indonesian government has reduced the number of state-owned enterprises from 112 to 47 companies, with seven of them designated as strategic companies that will be managed specifically under the auspices of Danantara. Meanwhile, Member of Commission XI of the House of Representatives Fathi reminded the government to manage assets transparently and operationally, including assets managed by the Daya Anagata Nusantara Investment Management Agency (Danantara).
Danantara was established with a structure that allows supervision and implementation of investment functions to be carried out separately but synergistically. There are two main entities in this institution, namely the Supervisory Board and the Executive Board. The Minister of SOEs serves as Chairman of the Supervisory Board and a member, along with representatives from the Ministry of Finance and professional figures appointed directly by the President.
The term of office of the members of the Supervisory Board is set for five years and can be extended as needed. The Executive Board itself is led by a Head appointed by the President and is tasked with implementing investment policies with the support of the executive director and various committees, including the Audit Committee and the Ethics Committee. This structure is designed to ensure data-based decision-making, free from political interference, and accountable to the public.
According to Deputy Minister of State-Owned Enterprises (BUMN) Aminuddin Ma’ruf, Danantara is a new entity in Indonesia’s economic civilization that has a strategic role in encouraging BUMN to become a world-class company, because Danantara’s investment focus is directed at sectors that have a strategic impact on national development and Indonesia’s competitiveness at the global level.
Among the priority sectors are renewable energy, manufacturing and downstream industries, and food production. The government sees renewable energy as a long-term solution to address the challenges of climate change and dependence on fossil fuels. Investment in the manufacturing and downstream sectors is directed at increasing the added value of local products, reducing imports, and encouraging domestic industrial growth. Meanwhile, the food production sector is a major concern in ensuring sustainable national food security, especially in the face of global supply shocks due to conflict and climate change.
President Prabowo Subianto emphasized that the management of Danantara must prioritize the principles of transparency and accountability. In his speech, the President said that the assets managed by Danantara belong to the people, so their management must be auditable at any time by anyone. This commitment is reflected in the formation of independent committees that have the authority to oversee the investment process and asset management.
The Audit Committee, for example, is responsible for ensuring that all investment decisions are based on sound risk assessment and are aligned with long-term objectives. The Ethics Committee is tasked with maintaining the integrity of the organization and preventing potential conflicts of interest.
Danantara’s success in demonstrating transparency, generating competitive returns, and maintaining the sustainability of its investment portfolio will greatly determine Indonesia’s attractiveness as a long-term investment destination.
The launch of Danantara is also a strong signal to the international market that Indonesia is serious about improving the governance of state assets and opening up safer and more sustainable investment opportunities. In a global context that increasingly demands accountability and ESG (environmental, social, and governance), the presence of Danantara has the potential to make Indonesia a major player in environmentally and socially aware investment in the Southeast Asia region.
Optimism towards Danantara is not merely political euphoria, but rather a concrete hope to create a modern, efficient, and people-oriented state asset management system. With transparent asset management based on good governance, Indonesia has a great opportunity to accelerate economic growth towards the government’s target of 8% per year.
Danantara’s success certainly requires support and supervision from various parties, including civil society, academics, and business actors. Synergy between the government and the public is key so that this institution truly represents national interests and does not become a mere tool of power. With promising initial steps and a solid institutional design, Danantara has all the elements needed to successfully manage state assets transparently and professionally.
