Prabowo Issues New Government Regulation for Danantara, Expanding Authority to Form Holdings
The Indonesian government has expanded the authority of the Danantara Investment Management Agency (BPI Danantara) through Government Regulation (PP) Number 19 of 2026, which amends PP Number 10 of 2025. One of the primary changes is granting Danantara the power to form multiple investment and operational holdings to manage state assets and state-owned enterprises.
In the regulation signed by President Prabowo Subianto on 8 April 2026, the government inserted Articles 29A, 29B, and 29C to regulate the holding structure under Danantara. Article 29A stipulates that in exercising its authority, Danantara will establish Investment Holdings and Operational Holdings. Both entities will be established as limited liability companies (PT), with all shares owned by Danantara. This provision reinforces Danantara’s position as the sole shareholder and parent company of the holdings formed to manage state investments and operations.
Furthermore, Article 29B stipulates that Danantara may establish more than one investment or operational holding, subject to presidential approval. These investment holdings can be formed for three distinct purposes: investments oriented towards commercial returns, investments focused on national development and public services, and other purposes approved by the President. This regulation provides Danantara with the flexibility to build various holdings based on different mandates, ranging from profit-seeking investments to the execution of national development programmes.
‘Investment Holdings may conduct investments, both directly and indirectly, and engage in cooperation with third parties,’ as stated in Article 29B, paragraph (4). The regulation also clarifies that any profits or losses arising from investment activities are the responsibility of the respective investment holding. Danantara’s liability for losses in these holdings is limited to the value of the capital contribution it has placed.
In addition to expanding the holding structure, the government is also opening opportunities for direct fiscal support to holdings performing national development functions. Through Article 31A, the state may provide State Capital Injections (PMN) to investment holdings established to support national development. Sources for PMN may include fresh funds, state-owned assets, state receivables from SOEs or limited liability companies, and other state assets. Notably, these investment holdings can request PMN support through Danantara. Upon receiving PMN, the holding’s status changes to a State-Owned Enterprise (BUMN) designated as a government fiscal tool.
This provision marks a new model for managing state investments, where holdings under Danantara serve not only as investment vehicles but also as instruments to support national development agendas through direct support from the State Budget (APBN). The regulation also specifies that commercially oriented investment holdings will be managed by PT Danantara Investment Management, as per Article 32B. Meanwhile, holdings established for national development purposes are required to consider long-term benefits for economic and social development, ensuring that investment activities adhere to the principles of accountability, sustainability, and good governance.
Government Regulation Number 19 of 2026 serves as a critical regulation that clarifies Danantara’s role as the manager of state investments while providing greater flexibility in forming holdings and managing strategic state assets.