Danantara's Inclusion in KSSK Risks Blurring Authority Boundaries, Economists Warn

The Financial System Stability Committee (KSSK) faces the risk of institutional erosion as the boundary between policymakers and entities with economic interests becomes blurred. President Prabowo Subianto’s directive to involve the Danantara Investment Management Agency in every KSSK decision-making process has raised concerns about the independence of Indonesia’s financial authorities. The instruction was issued during a meeting at the Presidential Palace in Jakarta on Monday night, which was also attended by Danantara CEO Rosan Roeslani and Deputy Speaker of the House of Representatives Sufmi Dasco Ahmad. The meeting took place just hours after the government announced the resignation of Bank Indonesia Governor Perry Warjiyo and the appointment of Senior Deputy Governor Destry Damayanti as acting governor. Destry stated that the President requested KSSK to strengthen coordination not only among its members but also with Danantara. However, analysts have warned that this involvement must be accompanied by clear institutional boundaries. Ronny P Sasmita of the Indonesia Strategic and Economic Action Institution noted that while Danantara could provide technical input, its role should not extend to policy formulation or decision-making. He suggested that Danantara’s participation should be on an invitation-only basis for specific issues, with transparent protocols. He warned that without strict limits, a latent conflict of interest could arise, as Danantara is a portfolio entity rather than a stability authority. Syafruddin Karimi, an economist from Andalas University, added that Danantara should only be permitted as a non-voting technical resource, not as a member of the stability forum. He stressed that the KSSK must maintain the independence of Bank Indonesia, the Financial Services Authority (OJK), and the Deposit Insurance Corporation (LPS) by enforcing clear governance rules, limiting Danantara’s status, and regulating access to sensitive information.