Funding No Longer Through State Budget, Danantara Emerges as New Pillar of National Investment
Jakarta – The government has officially ended the State Capital Injection (PMN) scheme as a financing instrument for both state-owned and private companies. This policy marks a significant milestone in national financing reform and reflects the government’s commitment to establishing a healthier, more efficient, and independent funding mechanism that no longer burdens the State Budget (APBN).
As a replacement, the government now relies on the Daya Anagata Nusantara Investment Management Agency (BPI Danantara) as a new entity that will serve as the funding solution through an investment model based on the management of state-owned enterprise (SOE) dividends. This model is considered more flexible and professional, while also reducing the fiscal burden previously caused by the PMN scheme.
Danantara’s Chief Operating Officer (COO), Dony Oskaria, emphasized that the traditional PMN mechanism is no longer in effect. Nevertheless, companies can still receive capital support through Danantara.
“In the past, equity came from the government via the state budget; now, it comes from Danantara—funded by dividends from SOEs. So if a company needs additional capital, it will be sourced from Danantara,” Dony stated.
This approach also closes the door to potential misuse associated with the former PMN process, which involved political considerations in parliament. The new funding model is conducted professionally, based on rigorous business feasibility assessments and strategic needs.
“I don’t believe there’s room for collusion anymore. Everything is done professionally, with a clear process and structured stages—especially when it comes to equity injections. I think it’s all very transparent,” he added.
As a concrete step in this reform, President Prabowo Subianto has revoked Government Regulation (PP) No. 34 of 2022 concerning the additional PMN in PT Waskita Karya Tbk. This has been replaced by Government Regulation No. 20 of 2025, signed on May 6, 2025.
“Government Regulation No. 34 of 2022 on the Addition of State Capital in PT Waskita Karya Tbk is hereby revoked and declared no longer valid,” reads Article 1 of PP No. 20/2025.
Danantara’s Chief of Investment, Pandu Sjahrir, stated that Danantara’s role extends beyond asset management, positioning the agency as a critical player in Indonesia’s economic transformation through cross-sector collaboration.
“Danantara’s strategic objective is to drive economic growth through investment, job creation, risk management, and sustainable returns. To do this, we must collaborate with the private sector and partner with global investors to foster innovation,” Pandu explained.
He also noted that the government is encouraging the involvement of the domestic private sector to strengthen the national investment climate. Danantara is expected to become an active partner for capable local businesses that have the expertise and potential to drive industrial growth and generate high-value employment.
“Collaboration with private sector players across industries means we act as both capital provider and local partner, while the private sector delivers value through these investments,” Pandu affirmed.
With this new strategic role, Danantara is expected to become the foundation of a fiscally sound, sustainable national financing model—one that can enhance Indonesia’s economic resilience over the long term.
