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View all search resultsAnalysis: Prabowo’s allies lead SOEs while Danantara sidelines ministry
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Stern beginnings: President Prabowo Subianto (center) addresses reporters on Monday after Danantara’s first town hall meeting at the Jakarta Convention Center (JCC) in Senayan, Central Jakarta. (JP/Ruth Dea Juwita)
T
he recent appointment of directors and commissioners in Indonesia’s state-owned enterprises (SOEs) saw the assignment of President Prabowo Subianto’s allies, including retired and active-duty officers from the Indonesian Military (TNI) and the Indonesian Police (POLRI), along with fellow alumni of the elite Taruna Nusantara high school. The overt political calculation comes as the authority of the SOEs Ministry is increasingly eclipsed by Daya Anagata Nusantara Investment Management Agency (Danantara), the new sovereign wealth fund launched by Prabowo.
At energy holding Pertamina, four Taruna Nusantara alumni now sit on the board of directors, namely President Director Simon Aloysius Mantiri, Deputy President Director Oki Muraza, Business Transformation & Sustainability Director Agung Wicaksono, and Human Capital Director Andy Arvianto. Former police commissioner generals Mochammad Iriawan and Condro Kirono, together with retired Navy lieutenant general Bambang Suswantono, retain their posts on the board of commissioners.
Mineral-holding giant MIND ID also absorbed senior TNI and POLRI figures. Retired Inspector-General of Police Firman Santyabudi joins President Director Air Vice Marshal (ret.) Maroef Sjamsoeddin on the board, while active three-star police general Fadil Imran takes a commissioner seat alongside retired lieutenant-general Nugroho. Its sub-holdings saw similar moves, where Lt. Gen. (ret.) Bambang Ismawan and Com. Gen. (ret.) Rudy Sufahriadi were named commissioners of Bukit Asam and Aneka Tambang, respectively, and Col. (ret.) Restu Widiyantoro was promoted to president director of PT Timah.
Across the SOE landscape, Minister Erick Thohir has now placed 45 retired TNI and POLRI officers in commissioner roles. TNI veterans were made president commissioners of MIND ID subsidiaries Indonesia Asahan Aluminium (Inalum), PT Timah, and PTBA, along with defense holding Len Industri (DEFEND ID) subsidiaries Pindad and Dahana, as well as Pelabuhan Indonesia (Pelindo), Garuda Indonesia, PT Hutama Karya (PT HK), Adhi Karya, and Rajawali Nusantara Indonesia (ID FOOD). Meanwhile, former police officers lead the board as president commissioners of Pertamina and Taspen. Some placements appear to violate statutes. The appointment of Fadil, who is still in service and leads POLRI’s Security Maintenance Agency (Baharkam) may have violated Law No. 2/2002 on POLRI, which stipulates that police officers could only have positions outside POLRI after they are not part of the service anymore. Law No. 34/2004 on TNI imposes the same restriction on active-duty soldiers. Yet, the Indonesian Ombudsman recently revealed that 27 active TNI officers still hold SOE positions.
Although Law No. 1/2025 on SOEs stated that the SOE Minister has a final say over all SOE leadership, Thohir insiders say Erick Thohir’s grip has weakened, especially over subsidiaries pooled under IDSurvey, an operational unit of Danantara. Danantara CEO Rosan Perkasa Roeslani, also Investment and Downstream Minister and BKPM head, has postponed several SOE annual general meetings, while Danantara COO Dony Oskaria (ex-officio SOEs deputy minister) is reportedly steering executive selections.
Stacking SOE boards with Prabowo’s allies from Taruna Nusantara, TNI, and POLRI into the leadership of various SOEs heightens the cronyism risk of to the business performance of said SOEs, especially since some of those appointed do not appear to have notable relevant experience. The selections also threaten to legitimize the illegal backing of corporations by uniformed service officers. The appointments also erode the rule of law by allowing officers still in service to hold corporate roles and sidelining the SOEs Ministry’s formal mandate.
