The People’s Representative Council of Indonesia (Dewan Perwakilan Rakyat or ‘DPR) has newly amended the SOE Law  (the ‘Draft Amendment’) that introduces Danantara, a sovereign wealth fund (SWF) aimed at enhancing SOE management and investment. Directly overseen by the President, Danantara will manage SOE dividends, restructure entities, and drive strategic investments to boost economic growth. Safeguards, including leadership requirements and audits, are in place, but transparency will be key as Danantara is set to control USD 900 billion in assets.

If governed effectively, Danantara could transform Indonesia’s SOEs, fostering a more dynamic, investment-driven economy. However, strong regulatory oversight will be essential to ensure accountability and long-term success.

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