Learning From INA, Danantara Needs To Work More Seriously To Get Investors

President Prabowo Subianto officially launched the Anagata Nusantara Power Investment Management Agency (BPI Danantara) on February 24, 2025. Danantara can be a breath of fresh air to encourage national economic growth through asset management of state-owned companies.

In the launch of Danantara earlier this week, Prabowo also outlined the philosophical meaning behind the name of the new investment management agency, namely Daya meaning energy strength, Anagata means the future, and Nusantara means the country.

In simple terms, the Danantara can be interpreted as the strength of the future of the archipelago.

However, the launch of the Danantara raises many questions, including the possibility of overlapping with the Indonesia Investment Authority (INA), which is also an Investment Management Institution (LPI).

Since the Danantara discourse emerged at the end of last year, many parties have been curious about the main concepts and objectives of this institution, especially in relation to investment and management of state assets.

Not a few also compare Danantara with INA, an investment fund management institution that already operates. Public questions about these two institutions are commonplace, considering that both of them are engaged in the realm of investment and the management of strategic assets.

Presiden Prabowo mengumumkan akan meluncurkan Danantara dalam acara World Government Summit 2025 secara virtual di Dubai, Uni Emirat Arab (UAE), Jumat (14/2/2025).

Meanwhile, INA was first established, namely in the era of the seventh President Joko Widodo (Jokowi). He founded a sovereign wealth fund (SWF) or government investment fund in January 2021. The legal basis is Government Regulation (PP) Number 74 of 2020 concerning Investment Management Institutions (LPI).

After the inauguration ceremony for the management, Monday (24/2/2025), Danantara Chief Executive Officer (CEO) Rosan Roeslani confirmed that INA was not part of the Danantara. He said this Investment Management Institution (LPI) remains a separate entity even though there is already a Danantara in the form of BPI.

"(INA) its own entity," said Rosan.

In addition, Rosan also ensured that later the state-owned companies under Danantara would increase. He said that all state-owned companies would become part of the Danantara.

In line with Rosan, Danantara's Chief Operating Officer (COO), Dony Oskaria also agreed that INA would be separated from Danantara.

He also ensured that all state-owned companies, including the aviation sector, would be part of the Danantara. Dony said the government is targeting this to be completed before the General Meeting of Shareholders (GMS) is held in March this year.

Although Rosan emphasized that INA is not part of the Danantara, Executive Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira said that in the Danantara there was INA, including with the consolidation of assets of seven SOEs.

"While previously there was no INA (BUMN). That's the difference. So this Danantara is an investment vehicle umbrella that is higher than INA," said Bhima when contacted by VOI.

However, Bhima emphasized that one thing that lessons from the establishment of INA is that this institution formed by Jokowi has not been able to attract foreign investors to enter IKN. Meanwhile, Danantara is now expected to encourage direct investment because it has asset guarantees from SOEs, including seven jumbo SOEs, namely Pertamina, MIND ID, Telkom, Bank Mandiri, BRI, and BNI.

On the other hand, INA and Danantara's legal umbrella has differences in the status of losses. PP No.74/2020 did not explain whether INA's losses included state losses or not. Meanwhile, amendments to the BUMN Law which have just regulated that the benefits or losses suffered by BPI Danantara are benefits or losses of the Agency.

"So this isplusminus. On the one hand, it provides flexibility for Danantara management to look for various project entrustion schemes without worrying if the project loses, it will be dragged into a legal case of state losses," he said.

"There are many lessons why INA has not succeeded in attracting investment, meaning Danantara must be more serious about ensuring investors enter priority projects," Bhima added.

Bhima also conveyed that he needed a management figure who was all out in carrying out Danantara's operations. This statement refers to several Danantara administrators who still hold concurrent positions with other positions in government.

"It takes both the board of directors and advisors who are 'all out' in carrying out the Danantara operationally," he said.

He suggested that Danantara leaders should choose one of the positions in the midst of the concurrent positions they are currently undergoing. This is done in order to avoid conflicts of interest and avoid political interests.

"This can avoid conflict of interest, then it can avoid political interests if concurrent positions are eliminated, meaning that one can choose one," said Bhima.

As is known, Prabowo appointed Rosan Roeslani as CEO of Danantara, Dony Oskaria as Chief Operating Officer (COO) of Danantara, and Pandu Patria Sjahrir as Chief Investment Officer (CIO) of Danantara.

Whereas currently Rosan is still serving as Minister of Investment/Head of the Investment Coordinating Board (BKPM), Dony Oskaria serves as Deputy Minister of SOEs, and Patria Sjahrir as Chair of Digital Finance Development of the Indonesian Chamber of Commerce and Industry (KADIN).

Since President Prabowo alluded to the plan to create Danantara at the end of last year, this discourse has actually been in the spotlight. This step raises concerns regarding the potential for overlapping authority with the Ministry of SOEs and INA.

Economic observer from Paramadina University Wijayanto Samirin said that the existence of Danantara could cause problems in coordination with existing investment agencies.

"It has the potential to overlap with INA and the Ministry of SOEs. I am afraid that the establishment of this institution is a spontaneous idea, without being based on in-depth studies and analysis," said Wijayanto in October last year.

According to him, INA's investment agency has functioned well as a professional investment manager. Wijayanto actually advised the government to only expand INA's business coverage without having to form a new investment agency.