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Danantara set for launch in March, ministry says
Deputy Minister Kartika Wirjoatmodjo noted that Danantara’s investment focus would be related to President Prabowo Subianto’s policy priorities, such as food security, housing and energy.
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Deputy State-Owned Enterprises Minister Kartika "Tiko" Wirjoatmodjo speaks during an event in Jakarta on May 9, 2022. (Ministry of State-Owned Enterprises/-)
T
he government is set to launch Investment Authority of Indonesia (IAI) Danantara next month, Deputy State-Owned Enterprises (SOEs) Minister Kartika “Tiko” Wirjoatmodjo has revealed, highlighting the recent revision of the SOEs Law.
“Under the [revised] law, we will be developing Danantara as an SOEs superholding and investment vehicle of the Indonesian government. Please bear with us as we ensure the proper details for this organization, which hopefully will be launched next month,” he stated during the Mandiri Investment Forum 2025 on Tuesday.
On Feb. 4, the House of Representatives passed a bill to revise Law No. 19/2003 on SOEs, paving the way for the establishment of Danantara. The new agency is to work alongside the SOEs Ministry to oversee and manage the country’s state-run firms, with more than Rp 10 quadrillion (US$609 billion) in assets.
IAI Danantara, not to be confused with the Indonesia Investment Authority (INA), will have an initial capital of at least Rp 1 quadrillion.
The final draft of the bill remains unavailable to the public, but a Jan. 16 revision seen by The Jakarta Post reveals that the agency would have significant control over SOEs. The SOEs minister would still hold some authority, though, including the right to give assignments to SOEs and to conduct investigations into all entities under Danantara.
The SOEs minister will also serve as chairman of Danantara’s supervisory board, overseeing the agency’s key performance indicators. Moreover, the agency will be responsible for managing dividends from an investment holding company, a main holding company and the SOEs it manages, which it can then use as capital for entities in the agency.
“When the agency makes a profit, a portion may be disbursed as dividends to the state budget, after setting aside provisions to cover investment risks and/or increase capital accumulation,” the draft states.
