INDONESIA Trends and Developments Contributed by: Ira A Eddymurthy and A Charlie R Malessy, SSEK Law Firm
SSEK Law Firm Mayapada Tower I, 14th Floor Jl Jend Sudirman Kav 28 Jakarta, 12920 Indonesia Tel: ++62 215 212 038 / +62 212 953 2000
Fax: +62 215 212 039 Email: ssek@ssek.com Web: www.ssek.com
Danantara’s Establishment and Accountability
and Governance of Badan Pengelola Investasi Daya Anagata Nusantara ( “GR 10/2025” ), with both legal instruments coming into force on 24 February 2025. As part of its establishment, Danantara is man - dated to hold minimum capital of IDR1 quad - rillion, which may be supplemented through further state capital injections and other lawful sources. With this capital base, Danantara can carry out direct or indirect investments and enter into partnerships with third parties. Notably, the SOE Law appears to afford Danantara a certain degree of legal immunity. While Danantara is a special legal entity controlled by the govern - ment, its profits and losses are not classified as state financial gains or losses. Furthermore, no party is permitted to seize Danantara’s assets, except for the purpose of enforcing a security interest over such assets. This protection is further extended by stipulating that Danantara officials, including members of its supervisory board ( dewan pengawas ) and executive body ( badan pelaksana ), as well as its employees, are not considered state administrators ( penyeleng- gara negar a). While this raises important questions regard - ing Danantara’s financial accountability and
At the outset of 2025, the Indonesian govern - ment advanced its national investment strategy through the establishment of a new state-owned investment entity called Badan Pengelola Inv- estasi Daya Anagata Nusantara , or Danantara, modelled after Singapore’s Temasek Holdings. This initiative was formalised under Law No 1 of 2025, which constitutes the Third Amend - ment to Law No 19 of 2003 on State-Owned Enterprises (the “SOE Law” ) and was approved by Parliament on 7 February 2025. The enact - ment reflects the government’s ambition to adopt international best practices and replicate proven investment frameworks implemented in other jurisdictions. The overarching objective of this reform is to consolidate the management of all state-owned enterprises (SOEs), their respective income streams and other state assets under a unified investment platform, thereby fostering a more robust and strategically coherent investment structure for the country. The enactment of the amended SOE Law was swiftly followed by the issuance of Government Regulation No 10 of 2025 on the Organization
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