Danantara Ensures Investment Risks Will Not Disrupt State-Owned Enterprise Assets
Jakarta (ANTARA) - Chief Operating Officer of the Danantara Investment Management Agency (BPI Danantara), Dony Oskaria, has assured that the institution was established with a clear risk protection mechanism, primarily through the separation of state-owned enterprise (BUMN) asset management and investment functions. This scheme is designed to ensure that investment activities do not disrupt the health of the BUMNs that form Danantara’s main foundation.
In a statement received in Jakarta on Sunday, Dony explained that this separation has been part of the institution’s design from the very beginning. Danantara possesses two distinct, complementary functions: Danantara Asset Management and Danantara Investment Management.
“From the start, we designed it to be split. Danantara has two parts, Danantara Asset Management as the consolidator of BUMNs, and Danantara Investment Management as its investment arm,” he said.
Dony emphasised that this separation is crucial to prevent investment risks from directly impacting the assets of the state-owned enterprises under management. He noted that the sustainability of Danantara is heavily determined by the quality of management of the state companies within its portfolio.
He further explained that the funds used for Danantara’s investments do not come from the core assets of the BUMNs. Instead, the investment capital is sourced from the dividends generated by the sound management of these state-owned enterprises.
“The assets invested are dividends. Dividends generated by Danantara Asset Management are then invested in productive sectors to accelerate our economic growth,” Dony clarified.
Amidst public scrutiny regarding the management of state-owned enterprises and national assets, Dony stressed that the separation of functions is a fundamental part of Danantara’s institutional design. He added that this structure needs to be clearly communicated to the public so that they understand the government’s rationale, the direction of management, and the long-term objectives.
He also underscored that governance in the management of state-owned companies must be executed properly. With this foundation, Danantara is expected to fulfil its role as a state asset management instrument that drives economic growth, while maintaining the separation of functions and the principle of prudence.