Leaked Reasons Behind the Delay in Establishing Danantara

Deputy Minister of Finance, Thomas Djiwandono, revealed that the progress of the Investment Management Agency (BPI) Daya Anagata Nusantara (Danantara) will not be launched soon. The reason lies in several regulatory frameworks that are not yet fully developed for implementing Danantara as a Superholding of State-Owned Enterprises (BUMN).

"Another reason for Danantara as a superholding is to ensure that foreign funds are taxed. For example, cost recovery projects in the oil and gas sector are not taxed because all the projects are in USD," a government source told Hukumonline.

Danantara has the potential to ensure that foreign funds are taxed through more integrated and efficient management of BUMN assets. The cost recovery system is used because the state is not in a position to make its own investments, but on the positive side, the state can monitor every expenditure.

Moreover, Danantara is designed to oversee seven major state-owned companies, namely:

• PT Bank Mandiri (Persero) Tbk. (BMRI),

• PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI),

• PT PLN (Persero),

• PT Pertamina (Persero),

• PT Bank Negara Indonesia (Persero) Tbk. (BBNI),

• PT Telkom Indonesia (Persero) Tbk. (TLKM), and

• PT Mineral Industri Indonesia (Mind Id).

"So, (Danantara) will be strategically under the president first before it is completed and officially established," the source concluded.