Eko B. Supriyanto
PRESIDENT Prabowo Subianto officially launched the Investment Management Agency (BPI) Daya Anagata Nusa dan Antara (Danantara) on February 24, 2025, alongside the signing of Law No. 1 of 2025 on State-Owned Enterprises (BUMN) by Prabowo. Surprisingly, the Chairman of Danantara, who had been appointed on October 20, 2024, was replaced by Rosan Roeslani, who is also serving as the Minister of Investment and Down-streaming/Head of the Investment Coordinating Board (BKPM).
The day after Danantara’s official launch, the capital market took a sharp dive. Large-cap stock prices fell drastically. This could be attributed to investor concerns about the country’s fiscal health. According to Nomura Asia Insights’ report, Indonesia: Fiscal Risk Monitor, the 2025 state budget deficit is expected to increase by 0.9%, widening beyond the government’s original target of 2.5% of GDP. In response, Morgan Stanley downgraded Indonesia’s stock rating to underweight.
Danantara was established with the expectation of driving 8% economic growth. It is designed as a super holding company, similar to Singapore’s Temasek, which has been widely regarded as a success. Danantara has been given the responsibility of managing the assets and investments of state-owned enterprises (SOEs). The hope is that by separating regulatory and operational functions, the government can avoid conflicts of interest. In theory, this could make the management of SOE assets more business-focused and less influenced by politics.
