Danantara Confirms Its Role Will Not Overlap with PFII Regulator

The Daya Anagata Nusantara Investment Management Agency (“BPI Danantara”) has addressed public concerns and speculation regarding the potential overlap between its authority and that of the independent regulator responsible for managing the Indonesian International Financial Center (Pusat Finansial Internasional Indonesia – “PFII”). Under the current formulation of the PFII Draft Bill, the institution responsible for managing the PFII area would be permitted to enter into partnerships with State-Owned Enterprises (“SOEs”), including Danantara.

“Danantara’s involvement is primarily intended to pursue commercial business opportunities, such as the development of physical infrastructure or the provision and leasing of property. So, Danantara will also conduct business there,” explained Inosentius Samsul, Senior Director of Legal Asset Management at BPI Danantara, to Hukumonline.

Accordingly, the relationship between Danantara and PFII would be based purely on private-law arrangements and business-to-business schemes. Moreover, PFII is designed as an independent institution established by law to create a secure and conducive investment ecosystem for global investors.

“What is certain is that the process is now only awaiting enactment. It is not at the legal scrubbing stage; it is awaiting enactment and the President’s signature. We will have to wait and see,” he added.