Compared to 1MDB, Danantara: SOE and Investment Risks Are Separate
Jakarta, CNBC Indonesia - The Daya Anagata Nusantara Investment Management Agency (BPI Danantara) has asserted that its institutional structure is designed differently from investment management schemes such as 1Malaysia Development Berhad (1MDB).
Danantara Chief Operating Officer Dony Oskaria explained that, since its inception, Danantara has implemented a strict separation between the management of State-Owned Enterprises (SOEs) and investment activities to mitigate risk.
According to him, public concerns comparing Danantara to 1MDB arose due to the consolidation of SOE assets alongside an investment function within a single entity. However, he stressed that Danantara was designed with a different governance mechanism through the separation of asset management and investment functions.
“From the beginning of designing Danantara, we already thought there must be a segregation of risk between SOE management and investment. Because investment can fail, it can yield results,” Dony said, as quoted from a written statement by the Government Communication Agency of the Republic of Indonesia on Friday (12/6/2026).
He elaborated that without this separation, an investment failure could potentially have a direct impact on the performance of the state-owned companies that form the backbone of the national economy.
“You can imagine if we then invest and the investment fails, it could drag down the SOEs. That is why from the start we designed it, we split it,” he stated.
Dony explained that Danantara has two main pillars. First, Danantara Asset Management, which functions as a consolidator and manager of the SOE portfolio. Second, Danantara Investment Management, which acts as the investment arm to place funds in productive projects.
“Danantara Asset Management as the consolidator of SOEs, and Danantara Investment Management as its investment arm,” he continued.
He added that the source of funds used for investment does not come from the core assets of the SOEs, but rather from the dividends generated by the state companies under the management of Danantara Asset Management.
“What is invested is the dividend. So, the dividends generated by Danantara Asset Management are invested in productive things, to accelerate our economic growth,” Dony said.
Thus, Dony emphasised that Danantara’s success is highly dependent on the quality of SOE management. The better the performance of the state companies, the larger the dividends that can be utilised to support investment and national economic growth.
“What does that mean? SOE management is the main keyword for Danantara’s sustainability. If we mismanage the SOEs, Danantara will certainly be gone. Because the key to what is invested is the result of SOE management,” he concluded.