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Worried Because Of Danantara, Erick Thohir - SBY Put Their Own Faces On The Line

The Investment Management Agency, aka BPI Danantara, was designed to be a super holding for State-Owned Enterprises (BUMN). However, the market has not responded positively since a week after the launch of Danantara. According to Bisnis records, the Composite Stock Price Index, aka IHSG, parked in the red zone, dropping 7.83% to 6,270.59 throughout trading last week, February 24-28, 2025. The stock exchange's market capitalization was also recorded as dropping to IDR 10,880 trillion. On the other hand, a number of parties also warned that Danantara, which will have assets under management worth US$900 billion, is high risk. Some refer to the 1 Malaysia Development Behard or 1MDB case.

This case is the biggest corruption scandal in Malaysian history. Just to note, Danantara was launched by Prabowo on Monday last week. Prabowo is very optimistic about his new agency. He even claimed that Danantara would become one of the largest Sovereign Wealth Funds (SWF) in the world. "Danantara will become one of the largest sovereign wealth funds in the world," Prabowo said on Monday. Prabowo's statement is not an exaggeration. The reason is, since the enactment of Law No. 1/2025 concerning BUMN, Danantara will automatically replace the role of the Ministry of BUMN as the manager of the company and the Ministry of Finance in recording dividends from state-owned companies.

There are many points in the BUMN Law that provide a lot of flexibility to Danantara from upstream to downstream. The status of BUMN, for example, in the old policy, is a public institution and its capital is part of the separated state assets. However, in the new regulation, BUMN capital is considered as company capital. Although if you look closely at the policy, BUMN still accepts the statement of state capital as capital. Just to note, the 2023 Central Government Financial Report (LKPP) (audited), noted that the government's permanent investment or government capital participation in companies under the Ministry of BUMN reached IDR 2,809 trillion. This value has increased from the 2022 position which was recorded at IDR 2,710.6 trillion.

The change in points will change the government's permanent investment status which reached IDR 2,809 trillion as BUMN capital. This will ultimately minimize state intervention in the company. Moreover, there is an affirmation in the BUMN Law that they are no longer included in the group of state administrators and their status is a private legal entity. The consequence of the change in BUMN capital status from separated state assets is that BUMN losses are not state losses. Meanwhile, BUMN profits are company profits. This means that if a BUMN experiences losses, it cannot immediately be considered a state loss and immediately dragged by law enforcement officers. BUMNs that make a profit are also not required to deposit dividends directly into the state treasury. Dividends will be managed by Danantara. In addition to the shift in capital, the BUMN Law also reduces the BPK's authority to audit companies. The reason is, the law mandates that the authority to audit BUMN financial reports is in the hands of public accountants.  The BPK is only given space to conduct audits for specific purposes (PDTT). Even then, it must have permission from the DPR. 

Tag: BUMN Danantara Erick Thohir