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View all search resultsGovt gives Danantara legal shield for loss-cutting decisions
A new regulation frees Danantara and its employees from all liabilities over any decisions made to minimize losses, provided they can demonstrate that the resulting losses were not caused by error or negligence.
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A security officer patrols the premises on Feb. 24, 2025, at the headquarters of state asset fund Daya Anagata Nusantara (Danantara) in Kebayoran Baru, South Jakarta. (AFP/Bay Ismoyo)
T
he government has issued a regulation that allows state asset fund Danantara to implement cut loss and strategies based on its investment evaluations, without any legal liability over such decisions.
A provision in Government Regulation No. 34/2025 on asset management guidelines for Danantara stipulates that the fund must conduct regular evaluations of its investment performance including return on assets analysis, investment requirements and operational needs per year.
“Following the evaluation of investment asset performance, the agency may decide to implement cut loss or total loss measures,” the regulation reads, according to a copy of the document seen by The Jakarta Post.
The provision also states that neither Danantara nor its employees be held legally liable for any losses resulting from such decisions, as long as they can demonstrate that the losses were not caused by error or negligence. This includes showing that the decisions were made in good faith based on adequate assessments, did not involve conflicts of interest either directly or indirectly, were not made for personal gain and were intended to prevent greater losses.
According to the new regulation, which was signed by President Prabowo Subianto on Aug. 5, Danantara’s assets may come from state capital injections, development of existing assets, asset transfers from the government or state-owned enterprises (SOEs), grants and other sources. The assets may be in the form of stocks, securities, cash, receivables, land or buildings.
Read also: Revised SOEs Law paves way for Danantara after ‘compromises’
Launched on Feb. 24, Danantara has taken 844 state-owned enterprises (SOEs) under its management.
