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Govt starts shifting SOE shares to Danantara holding
“PT BKI will become an operational holding company and will review issues related to the company's finances and operations,” Garuda said in a letter to the Indonesia Stock Exchange (IDX) on Wednesday.
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The facade of the building in Jakarta housing sovereign wealth fund Danantara is pictured on Feb. 24, 2025.
(AFP/Bay Ismoyo)
T
he government has begun transferring its shares in state-owned enterprises (SOEs) to a newly designated holding company, PT Biro Klasifikasi Indonesia (BKI).
Originally a state-owned surveyor company, BKI has been restructured to serve as the super-holding entity for all Indonesian SOEs under the newly established sovereign wealth fund Danantara Indonesia.
PT BKI and the entities underneath it have been embroiled in a series of corruption scandals in recent years involving palm oil plantations and procurement for fictitious projects, among other issues.
Given the company’s troubled past, its designation as Danantara’s operational holding has drawn criticism, particularly amid a separate set of corruption cases involving state-owned enterprises emerging in the first few months of President Prabowo Subianto’s administration.
Four publicly listed state-run banks – PT Bank Mandiri, PT Bank Rakyat Indonesia, PT Bank Negara Indonesia and PT Bank Tabungan Negara – have announced that the government’s stakes in their businesses, ranging from 50 to 60 percent, had been moved to BKI as of March 22.
They cited the revised SOE Law and Government Regulation No. 15/2025 as the legal basis for the transfer.
Despite the shift, the government retains a single Series A Dwiwarna share in each company, granting it special privileges through the SOE Ministry.
