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February 25, 2025 | 11:23 pm
TEMPO.CO, Jakarta - A researcher at the Center for Strategic and International Studies (CSIS) Department of Economics, Deni Friawan, scrutinizes the organizational structure of the Daya Anagata Nusantara (Danantara) Investment Management Agency. He argued that the structures make Danantara vulnerable to political intervention and merely add layers of bureaucracy.
According to Deni, the establishment of Danantara was intended to enable state-owned enterprises (BUMN) to function properly without depending on politics. But the current organizational structure implies no such thing.
The amended SOEs Law emphasized that the sovereign wealth fund will be directly accountable to the president. "Thus Danantara remains under the SOEs Ministry,” Deni said at the CSIS Auditorium in Tanah Abang, Central Jakarta, on Tuesday, February 25, 2025.
The draft of SOE law revision also stipulated that the head of the upervisory board of Danantara will be filled by SOEs Ministers, which is authorized to dismiss the members of the agency’s executives.
Danantara’s CEO is the Investment and Downstreaming Minister, Rosan Roeslani, while the head of its supervisory board is Erick Thohir, the SOEs Ministry. “Let’s see, the SOEs Ministry and the Investment Ministry are equal entities. If the supervisor and the supervised are equal, it becomes ineffective," Deni stated.
According to Deni, despite holding only 1 percent of the shares, the Ministry of State-Owned Enterprises still plays a crucial role. It is known that the investment holding and operational holding shares will be owned by SOEs Minister and BPI Danantara. The Minister of State-Owned Enterprises, representing the president as the holder of power, will hold one percent of the Class A shares, while Danantara will hold 99 percent of the Class B shares.
"So, the management of Danantara still falls under the influence or supervision of the Ministry of SOEs," Deni said.
Deni acknowledged that the establishment of Danantara aims to improve the governance of state-owned enterprises, attract foreign investment, and enhance competitiveness. However, he does not see any changes in the functions, organizational structure, or governance of state-owned enterprises themselves.
The current structure only adds to the bureaucratic layers, he said. "Previously, for example, there were SOEs holding companies under the Ministry of State-Owned Enterprises. Now exists the Danantara superholding before the Ministry of SOEs, which adds another layer of bureaucracy,” he said.
President Prabowo Subianto launched Danantara on Monday, February 24, 2025, at the Presidential Palace in Jakarta. He has signed Presidential Decision Number 30 of 2025 regarding the appointment of the supervisory board and the executive board of the Danantara Investment Management Agency Indonesia.
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