UU BUMN Approved, Erick Thohir: Danantara Is Officially Established

The draft law for the third amendment to Law Number 19 of 2003 concerning State-Owned Enterprises (SOEs) has been approved and enacted. Minister of SOEs, Erick Thohir, announced that the law establishes the Investment Management Agency of Daya Anagata Nusantara, or BPI Danantara. "The Investment Management Agency of Daya Anagata Nusantara is officially established to consolidate the management of SOEs and optimize the management of dividends and investments," he stated during a plenary meeting of the Indonesian House of Representatives in Jakarta on Tuesday, February 4, 2025.

The aim is to enhance dividend management to assist the government in achieving the 8 percent economic growth target set by President Prabowo Subianto. "The transformation of SOEs through the establishment of BPI Danantara is a strategic step towards realizing the vision of a prosperous Indonesia by 2045," he added. Currently, seven SOEs are set to be managed by Danantara in its initial phase.

These seven SOEs are the largest in terms of asset ownership among the total of 47 SOEs. They include PT Bank Mandiri (Persero) Tbk, PT Bank Rakyat Indonesia (Persero) Tbk (BRI), PT PLN (Persero), PT Pertamina (Persero), PT Bank Negara Indonesia (Persero) Tbk (BNI), PT Telkom Indonesia (Persero) Tbk, and Mining Industry Indonesia (MIND ID), the holding company for the mining industry. They were selected due to their significant asset ownership.

In addition to these seven SOEs, the Investment Management Institution (LPI) or Indonesia Investment Authority (INA), a sovereign wealth fund established during the presidency of Joko Widodo, will also be included in Danantara. With the management of these seven major SOEs and INA, Danantara's assets are estimated to reach 600 billion USD, or around 9,780 trillion IDR (assuming an exchange rate of 16,300 IDR per USD). This positions Danantara as the fourth largest sovereign wealth fund in the world.

Tag: Danantara Erick Thohir UU BUMN