Indonesia’s Legislative Council recently passed the revised Law No. 19 of 2003 on State-Owned Enterprises (BUMN), which includes the establishment of the Investment Management Body (BPI) Danantara. The decision was made during the 12th plenary session of the 2024-2025 legislative year, held on February 4, 2025.

Sufmi Dasco Ahmad, Deputy Speaker of the Indonesian House of Representatives, emphasized that the newly formed BPI Danantara will play a key role in managing and optimizing assets and investments in state-owned enterprises. “All BUMN will be optimized under BPI Danantara as stipulated in the revised law,” Dasco explained to the media as reported by kumparan.com.

However, he also noted that further details on the regulations, such as the Government Regulation (PP) concerning BPI Danantara, will need to be issued before any concrete understanding of its workings can be fully established.

Dasco urged the public to await the official regulations before forming conclusions about the BPI Danantara and its role in the government’s efforts to transform Indonesia’s state-owned enterprises. He emphasized that clear and comprehensive regulations are necessary to avoid any confusion regarding the potential of BPI Danantara.

Meanwhile, Minister of State-Owned Enterprises, Erick Thohir, confirmed the government’s full support for the creation of BPI Danantara. He described it as a strategic initiative to support Indonesia’s goal of becoming a developed nation by 2045. The establishment of BPI Danantara is considered an important part of this strategy to modernize the operations of BUMN, optimize dividends, and enhance investment management.

“The establishment of BPI Danantara is a crucial move to consolidate and improve BUMN management in the country. This will allow BUMN to operate more efficiently, professionally, and with global competitiveness,” said Minister Thohir during his address at the plenary session.

Additionally, the revised BUMN law is seen as a step forward in enhancing corporate governance, innovation, and technological adoption within BUMN while fostering superior human resources that align with global standards.

Under the new framework, several state-owned companies are set to join BPI Danantara, including prominent names such as PT Bank Mandiri, PT Bank Rakyat Indonesia, PT Bank Negara Indonesia, PT Pertamina, PT PLN, MIND ID, and PT Telkom Indonesia. Indonesia’s sovereign wealth fund, the Indonesia Investment Authority (INA), will also be integrated into the new investment body.

BPI Danantara’s establishment is also backed by an initial capital of at least Rp 1,000 trillion, derived from state capital participation and/or other sources. The government will provide contributions in the form of cash, state-owned assets, or shares in BUMN.

The formation of BPI Danantara is part of the Indonesian government’s broader initiative to strengthen its state-owned enterprises, ensuring they are capable of competing globally while contributing to national economic growth.

PHOTO: JIBI/BISNIS

This article was created with AI assistance.