Indef Spread Various Challenges That Will Be Experienced By Danantara

Photo: Doc. Antara

JAKARTA - Head of the Center of Macroeconomics and Finance Institute for Development of Economics and Finance (Indef) M. Rizal Taufikurahman emphasized the importance of maintaining transparency to increase the competitiveness of the Anagata Nusantara Power Investment Management Agency (BPI Danantara).

He said that the launch of the institution could strengthen the State-Owned Enterprises (BUMN) ecosystem with a more structured holding mechanism.

"With 99 percent ownership in operational and investment holdings, Danantara can consolidate BUMN assets more effectively, increase efficiency, and reduce the state's fiscal burden in managing state-owned companies," said M. Rizal Taufikurahman, quoted by Antara, Saturday, February 22.

He said that Danantara has the potential to contribute significantly to the national economy if it is really able to accelerate investment in various strategic sectors, such as infrastructure, energy, and manufacturing.

However, he stated that this potential could only be realized if Danantara had transparent and political interests.

"The main challenge that must be faced is the potential for conflict of interest, political intervention, and moral hazard in the management of SOEs. Without transparency, Danantara can turn into a burden on the state, not a solution," said Rizal.

In addition, he said that excessive bureaucratic complexity risks reducing Danantara's competitiveness compared to investment models in other countries.

He also emphasized that Danantara's success depends on the execution of strict policies, professional management, and the commitment to make the institution an economic instrument, not a political tool.

"Without transparency, Danantara can actually become a monopoly or rent-seeking tool that will harm SOEs, both in the short term and in the long term," added Rizal.

Presiden Prabowo Subianto rencananya akan meluncurkan Danantara secara resmi pada Senin, 24 Februari.

President Prabowo said that "Daya" means energy or strength, while "Anagata" means the future, so "Daya Anagata Nusantara" means energy or strength for the homeland or the archipelago.

"So, it means that Danantara is an economic force, investment funds which are Indonesia's energy, future strength. The country's wealth is managed, saved for our children and grandchildren," said President Prabowo.