TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Political resistance, poor planning cloud Danantara’s future
Experts warned that prolonged setbacks could erode foreign investors' confidence in the country's SOEs governance.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Danantara head Muliaman D. Hadad delivers a speech at an event in Jakarta in an undated photo. (JP/Dana Wardhana)
P
resident Prabowo Subianto has ended his first 100 days in office without launching the wealth fund Danantara despite ambitious plans to consolidate state-owned enterprises (SOEs) and boost investment through the new entity.
The entity known as the Investment Authority of Indonesia (IAI), not to be confused with the Indonesia Investment Authority (INA), is designed to be the country’s first SOE superholding and an investment management agency, akin to Singapore’s Temasek, set up over five decades ago.
Initially slated for launch on Nov. 7 last year, the debut was postponed due to a scheduling conflict with an overseas trip by the President, despite it having been planned weeks earlier. President Prabowo has yet to decide on a new date, leaving the agency’s future in limbo.
First Deputy Finance Minister Thomas Djiwandono, who is also the nephew of President Prabowo, confirmed that Danantara would not be launched in January, saying that the process to establish the agency was “more complicated than expected”.
He dismissed concerns over the delay, suggesting that careful planning was necessary.
“The President thinks that it is not the time yet. The regulatory framework needs to be clearer and the final execution needs to be better,” he said on Jan. 15.
Prolonged delays have occurred despite Prabowo having appointed Muliaman Hadad as Danantara’s head on Oct. 28 along with ministries in his cabinet.
