Danantara Is A Big Step For SOE Restructuring

JAKARTA - The formation of the Danantara is a big step for the restructuring of SOEs in Indonesia.

"The presence of Danantara will make the BUMN ecosystem more conducive and agile, with faster and more agile decisions both at home and abroad, without having to be hampered by the bureaucratic process and political interests," said senior economist from Paramadina University Wijayanto Samirin quoting Antara.

However, he reminded that every investment, especially those that carries innovation, must have a risk.

"High risk high return, no risk no return. What is important is that all investment processes are carried out transparently and according to the best procedures," he said.

He gave an example of Temasek from Singapore as a successful model of state investment, despite having suffered benefits and losses in a number of their portfolios.

Furthermore, Wijayanto also explained that if investment losses are considered a state loss, SOEs will tend to play safe by only investing their assets in deposits or bonds with limited interest.

This is unhealthy for the development of SOEs and will hinder their potential in the national capital market, which actually has great potential as a source of funding.

"The capital market is an initial indicator of industrial progress, and a good synergy between SOEs and the capital market can have a positive impact on the Indonesian economy as a whole," he explained.

The experience of developed countries, according to him, shows that a strong capital market can be the foundation of sustainable economic growth.