Jakarta – In a sweeping restructuring of Indonesia’s economic framework, the government has begun transferring its stakes in state-owned enterprises (SOEs) to a newly designated holding company, PT Biro Klasifikasi Indonesia (BKI), under the recently launched sovereign wealth fund, Daya Anagata Nusantara, or Danantara. Announced in late March 2025, this move consolidates control over key sectors ranging from banking to infrastructure, positioning Danantara as a cornerstone of President Prabowo Subianto’s economic vision. Yet, with BKI’s history of corruption scandals and fresh allegations emerging under the new administration, the initiative faces intense scrutiny over transparency and governance.
A New Economic Powerhouse
Launched earlier this year by President Prabowo Subianto, Danantara aims to streamline the management of Indonesia’s sprawling network of SOEs while attracting foreign investment through a dual structure. The fund operates through two arms: an operational holding managed by BKI, tasked with consolidating SOEs, and an investment holding focused on managing dividends and other funds for strategic investments. This ambitious setup mirrors global models like Singapore’s Temasek or Malaysia’s Khazanah Nasional, but its execution in Indonesia’s complex political landscape raises unique challenges.
As of March 22, 2025, the government has transferred its majority stakes in four major state-run banks—PT Bank Mandiri, PT Bank Rakyat Indonesia, PT Bank Negara Indonesia, and PT Bank Tabungan Negara—to BKI. These stakes, ranging from 50 to 60 percent, were moved under the legal framework of the revised SOE Law and Government Regulation No. 15/2025. The government retains a symbolic Series A Dwiwarna share in each, ensuring special privileges through the SOE Ministry, though operational control now lies with BKI. 
The transfer extends beyond banking. Infrastructure giants like PT Adhi Karya, PT PP, and the debt-laden PT Wijaya Karya and PT Waskita Karya have seen government stakes of 51 to 91 percent shifted to the holding company. Other key players, including PT Semen Indonesia (cement), PT Jasa Marga (toll roads), PT Krakatau Steel (steelmaking), PT Telkom Indonesia (telecommunications), and the national flag carrier PT Garuda Indonesia, have followed suit. Additionally, PT Danareksa, which oversees assets in finance, media, technology, and industrial zones like the Batang Integrated Industrial Zone, now has 99.9 percent of its shares under BKI’s control.
In a statement to the Indonesia Stock Exchange, Garuda noted that “PT BKI will become an operational holding company and will review issues related to the company’s finances and operations.” The airline highlighted expectations of “better access to resources and capital to enable business expansion and growth” as a key benefit of the restructuring.
Leadership and Strategic Vision
President Prabowo has appointed a high-profile team to steer Danantara, signaling an intent to bolster investor confidence. Investment and Downstream Minister Rosan Roeslani serves as CEO, while Deputy SOE Minister Dony Oskaria oversees operations as chief operating officer. The board includes current and former executives from the World Bank, state-owned Bank Mandiri, and the Indonesia Investment Authority (INA), another sovereign wealth fund. Entrepreneur Pandu Sjahrir, nephew of National Economic Council chairman Luhut Pandjaitan, has been named chief investment officer for the fund’s investment arm.
At a press conference on March 24, Dony Oskaria outlined plans to “remap” the structure of SOEs under BKI and review existing sectoral holding companies in areas like mining and tourism. Analysts interpret this as an attempt to centralize control and reduce inefficiencies, but some caution that consolidating power under a single entity risks exacerbating governance issues if oversight remains weak.
Corruption Shadows and Public Skepticism
The designation of BKI as Danantara’s operational holding has sparked significant controversy, largely due to the company’s troubled history. Originally a state-owned surveyor firm, BKI has been linked to multiple corruption scandals in recent years, including mismanagement in palm oil plantations and procurement fraud for fictitious projects. These issues, combined with a separate wave of corruption cases involving SOEs under President Prabowo’s nascent administration, have fueled public and investor skepticism about the fund’s ability to operate transparently.
Critics argue that entrusting BKI with such sweeping control over national assets—spanning banking, infrastructure, and telecommunications—may amplify existing risks rather than mitigate them. While the government insists that the restructuring will enhance efficiency and attract global capital, there is no concrete evidence yet to suggest that past governance failures have been addressed. If confirmed, ongoing investigations into SOE misconduct could further undermine confidence in Danantara’s mission.
Analysts also point to broader systemic challenges. Indonesia’s SOEs have long been criticized for political interference, with appointments often tied to patronage rather than merit. While the inclusion of international and private-sector figures on Danantara’s board is seen as a step toward professionalism, experts caution that success hinges on execution rather than symbolic gestures. As one economist noted, “A prestigious board means little if operational decisions remain politicized or opaque.”
Economic Implications and Investor Trust
Danantara’s creation comes at a critical juncture for Indonesia, Southeast Asia’s largest economy, as it seeks to compete with regional peers for foreign direct investment. The fund’s investment arm, under Pandu Sjahrir, is tasked with channeling SOE dividends and other resources into high-growth sectors, potentially including infrastructure, technology, and green energy. If managed effectively, this could position Indonesia as a more attractive destination for global capital, particularly as geopolitical tensions drive investors to diversify away from traditional hubs.
However, the fund faces an uphill battle for credibility. Reports suggest that early efforts to court international partners have met with cautious interest rather than firm commitments. Concerns over governance, coupled with Indonesia’s historical struggles with bureaucratic red tape, may deter risk-averse investors. The government’s retention of Dwiwarna shares, while a safeguard for national interests, also raises questions about the extent of autonomy granted to BKI and Danantara’s leadership.
Domestically, the restructuring could have mixed impacts. Consolidating SOEs under BKI may streamline operations and reduce redundancies, as Garuda’s statement suggests. For heavily indebted firms like PT Wijaya Karya and PT Waskita Karya, access to centralized resources could provide a lifeline. Yet, without robust accountability mechanisms, there is a risk that inefficiencies and mismanagement will persist, burdening taxpayers with the cost of bailouts or losses.
Regional Context and Global Comparisons
Indonesia’s push to centralize its SOEs under a sovereign wealth fund is not unique in the region. Singapore’s Temasek, established in 1974, has long served as a model for balancing state ownership with commercial objectives, managing a portfolio worth billions while maintaining a reputation for transparency. Malaysia’s Khazanah Nasional, though not without its own controversies, has similarly driven economic transformation through strategic investments. Danantara’s dual structure—separating operational and investment functions—appears to draw inspiration from these examples, but Indonesia’s political and institutional context presents distinct hurdles.
Unlike Singapore, where strong legal frameworks and low corruption levels underpin Temasek’s success, Indonesia grapples with systemic governance challenges. Transparency International’s Corruption Perceptions Index consistently ranks Indonesia below regional peers like Singapore and Malaysia, reflecting public distrust in state institutions. For Danantara to emulate Temasek’s achievements, it must prioritize anti-corruption measures and independent oversight—steps that remain unproven as of early 2025.
Looking Ahead
As Danantara takes shape, its ability to balance economic ambition with governance reform will be closely watched. President Prabowo Subianto has staked much of his administration’s credibility on this initiative, framing it as a transformative step for Indonesia’s future. Yet, with BKI’s controversial past and fresh corruption allegations casting a shadow, the fund’s early months will be a critical test of whether rhetoric can translate into results.
For now, questions linger over how BKI will address the financial and operational challenges of the SOEs under its control, and whether Danantara’s investment arm can secure the global partnerships needed to fuel growth. As reforms unfold, both domestic stakeholders and international observers will be looking for tangible signs of progress—proof that Indonesia’s bold economic experiment can overcome the weight of its own history.
