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February 24, 2025 | 10:37 am
TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto has signed the presidential decree regarding the structure of the Advisory Board and management of the Investment Management Agency of Nusantara (BPI Danantara) at the Presidential Palace, Central Jakarta, on Monday, February 24, 2025, in the morning.
In this regard, Prabowo signed Presidential Decree Number 30 of 2025 concerning the Appointment of the Board of Supervisors and the Executive Board of the Danantara Investment Management Agency Indonesia.
Prabowo also enacted Law Number 1 of 2025 on the Third Amendment to Law Number 19 of 2003 concerning the State-Owned Enterprises and Government Regulation Number 10 of 2025 concerning the Organization and Governance of BPI Danantara.
"Today, on Monday, February 24, 2025, I, as the President of the Republic of Indonesia, signed law number 1 of 2025," said Prabowo at the Presidential Palace in Central Jakarta on Monday, February 24, 2025, as monitored via the Presidential Secretariat's YouTube channel.
During the signing, Prabowo was accompanied by several figures. Among them were the Minister of Investment and Industrialization of Indonesia Rosan Roeslani, Minister of State-Owned Enterprises Erick Thohir, Pandu Patria Sjahrir, and Deputy Minister of State-Owned Enterprises (SOEs) Dony Oskaria.
Prior to this, at the World Governments Summit 2025, Prabowo stated that Indonesia is ready to launch the latest sovereign wealth fund, Danantara, which according to initial evaluations will manage US$900 billion of assets under management (AUM). The initial funding is targeted at US$20 billion.
"The initial funding this year will reach 20 billion US dollars. I think this will be a transformative step. We plan to start about 15 to 20 projects worth billions of US dollars, which will be a significant added value for our country," said Prabowo.
Prabowo stated that the funds in the superholding of the State-Owned Enterprises Danantara will be invested in strategic projects in various sectors. He also hoped that these sustainable projects would contribute to achieving Indonesia's economic growth target of eight percent over the next five years.
"Danantara, which will be launched on February 24, will invest our natural resources and state assets into sustainable and high-impact projects in various sectors, such as renewable energy, downstream industries, advanced manufacturing, food production, and others," said Prabowo at the World Governments Summit 2025.
Danantara works by collecting SOEs assets to make money. These assets will be used as collateral for debt or even sold.
The head of Danantara, Muliaman Darmansyah Hadad, said that Danantara is tasked with managing state investments outside the State Revenue and Expenditure Budget (APBN). Muliaman stated that the establishment of Danantara is a manifestation of Prabowo's commitment to optimizing state investment management.
The President, he continued, wants investment management to be more integrated and no longer run independently. "For example, there are government assets managed by ministries, then they are combined into one, leveraged, and managed. Then, what is the national investment policy like," said Muliaman at the Presidential Palace in Jakarta, on Tuesday, October 22, 2024.
The establishment of Danantara is stipulated in the Draft Law on the Third Amendment to Law Number 19 of 2003 concerning the State-Owned Enterprises Law. The approval of the bill was carried out in the Plenary Session of the House of Representatives of the Republic of Indonesia for the 12th Session of the 2nd Meeting of the 2024/2025 Session at Nusantara II Building, Senayan, Jakarta, on Tuesday, February 4, 2025.
Melynda Dwi Puspita, Ni Kadek Trisna Cintya Dewi, and Riani Sanusi Putri contributed to the writing of this article.
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