Danantara Separates SOE and Investment Risks, Here's the Objective
JAKARTA – Chief Operating Officer of the Daya Anagata Nusantara Investment Management Agency (Danantara Indonesia), Dony Oskaria, has emphasised that Danantara is designed with a clear risk management mechanism through the separation of state-owned enterprise (SOE) asset management and investment activities. This scheme is intended to ensure that investment risks do not disrupt the health of the state companies that serve as Danantara’s foundation.
According to Dony, this separation of functions has been part of the institutional design since Danantara’s inception. Consequently, Danantara is built with two entities that have distinct yet complementary roles: Danantara Asset Management and Danantara Investment Management.
“From the beginning, we designed it to be split. Within Danantara, there are two entities. Danantara Asset Management acts as the consolidator of SOEs, and Danantara Investment Management serves as its investment arm,” Dony stated on Sunday.
He explained that Danantara Asset Management is tasked with managing and consolidating the SOE portfolio, while Danantara Investment Management functions as the investment vehicle. With this structure, risks arising from investment activities will not directly affect the SOE assets under management. Therefore, Danantara’s sustainability is highly dependent on the quality of governance and the performance of the state companies within its portfolio.
Meanwhile, the funds used for investment do not come from the core assets of the SOEs. These investment funds are sourced from dividends generated by the sound and productive management of the SOEs. “The assets being invested are dividends. The dividends generated by Danantara Asset Management are then invested in productive ventures, such as accelerating our economic growth,” he said.
He added that the principle of corporate governance must serve as the primary foundation in managing the SOEs under Danantara. With strong governance and a clear separation of functions, Danantara is expected to fulfil its role as a state asset management instrument capable of driving national economic growth while maintaining the principle of prudence in all investment activities.