Danantara Awaits Cut Loss Regulations to Strengthen BUMN Investment

The Daya Anagata Nusantara Investment Management Agency (Badan Pengelola Investasi Daya Anagata Nusantara – “BPI Danantara”) is pushing for the completion of a number of derivative regulations of Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (“UU 4/2023”) relating to the development and strengthening of the capital market. The Legal Managing Direktor of BPI Danantara, Bono Daru Adji said that one of the regulations is related to cut loss and the reduction in investment value from funds managed by the State-Owned Enterprise (Badan Usaha Milik Negara – “BUMN”) holding.

“So at the business level regulations that are no longer in place and become obstacles to investment need to be revised. This include issuing new regulations related to cut loss so that later all investments made by Danantara can be carried out with the principles of transparency and good accountability,” Bono told Hukumonline.

As Article 191 of UU 4/2023 regulates the provisions for members of the board of directors or managers of pension programs related to state finances to be able to cut losses on assets managed to provide the possibility of more optimal returns and prevent greater losses.

“Later, the regulatory framework that is prepared will remain in the context of stock trading. So it allows investors or traders to set the lowest price level, including clearer exceptions,” he explained.