JAKARTA: Danantara\u2019s access to state capital is becoming more open.\nHowever, injections of funds and assets from the State Budget (APBN)\nmust produce tangible results: improving state-owned enterprises\u2019 (SOEs)\nproductivity, generating profits and attracting private and global\ninvestment. Without measurable performance targets, expanding its\ninvestment powers may do too little to create added value for the\neconomy.<\/p>\n
The opportunity emerged after the government issued Government\nRegulation No.\u00a019 of 2026 on 8 April 2026, revising Government\nRegulation No.\u00a010 of 2025 on the organisation and governance of the Daya\nAnagata Nusantara Investment Management Agency (Danantara). The\nregulation provides a legal basis for state capital contributions to\nDanantara\u2019s investment holding in the form of cash, state-owned goods,\nstate receivables and other state assets.<\/p>\n
Toto Pranoto, an SOE analyst at the University of Indonesia (UI),\nsaid the regulatory change clarifies the division of roles between the\nSOE Regulatory Agency (BP BUMN), as regulator and supervisor, and\nDanantara, as the body responsible for managing SOEs and\ninvestments.<\/p>\n
However, Danantara\u2019s expanded authority needs to be accompanied by\ngreater organisational agility. Toto said decision-making and business\nprocesses must not be held up by lengthy bureaucratic chains at the\nholding company level, which oversees businesses across a range of\nsectors.<\/p>\n
\u201cWith Danantara\u2019s authority growing, the key point is how it\nstrengthens its organisational agility so that no business processes are\nobstructed at the level of a multi-business SOE holding company,\u201d Toto\nsaid, quoted on Sunday (18 October 2026).<\/p>\n
With access to state funding and assets opening up, Danantara\u2019s\nchallenge is not simply to raise or distribute capital, but to ensure\nevery investment delivers measurable economic results. Investment\nperformance should be reflected in higher productivity, profitability\nand competitiveness among state-owned companies.<\/p>\n
That requirement also applies to the policy of retaining SOE\ndividends to strengthen companies\u2019 capital. Toto said additional capital\nmust be accompanied by improved business performance, enabling SOEs to\nincrease profits and once again contribute to state revenue.<\/p>\n
In other words, stronger capitalisation should not stop at improving\nbalance sheets. Companies also need to demonstrate greater operational\nefficiency and an increased ability to generate profits, so that\ninvested funds deliver sustainable benefits.<\/p>\n
State capital injections should be more\nselective<\/strong><\/p>\n Toto also stressed the importance of selectivity in allocating state\ncapital injections (PMN). He said PMN could continue to support the\ngovernment\u2019s strategic projects, while SOEs could seek capital from\nDanantara for other needs.<\/p>\n This arrangement could increase Danantara\u2019s role in setting financing\npriorities and allocating capital across SOEs. As a result, investment\ndecisions should be based on business viability, profit potential and\neconomic contribution, rather than solely on companies\u2019 funding\nneeds.<\/p>\n The change in funding patterns also makes transparency and\naccountability in the use of state capital increasingly important. Every\ninvestment decision should have clear performance targets, allowing the\nresults of fund placements and the use of state assets to be assessed\nobjectively.<\/p>\n Danantara\u2019s success, therefore, cannot be measured only by the value\nof the assets it manages or the amount of capital it distributes. Its\nability to generate returns, improve SOE performance and manage\ninvestment risks will be important in assessing how effectively it\nmanages state capital.<\/p>\n In addition to strengthening SOEs\u2019 internal performance, Danantara is\nexpected to play a greater role in attracting foreign investment to\nIndonesia. Toto said one necessary step was to prepare competitive\nbusiness proposals that appeal to global investors.<\/p>\n \u201cWhat Danantara needs to do is prepare attractive business proposals\nin Indonesia that can draw the interest of global investors,\u201d he\nsaid.<\/p>\n The entry of global investors could expand project financing,\nincrease investment capacity and create a multiplier effect for the\nnational economy. However, this will require projects that are\ncommercially viable, credible governance, and clarity about potential\nreturns and risks.<\/p>\n With its authority expanding, Danantara is strategically positioned\nto direct capital towards sectors and companies with growth prospects.\nThe challenge is to ensure that state support does more than increase\nfinancing capacity: it must also drive productive investment and create\neconomic value.<\/p>",
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"sponsor": "Okusi Associates",
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