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Legal Issues and Risks in the Regulation of the Establishment of Danantara

CELIOS has just released a BRIEF ANALYSIS examining various legal issues in the regulation of the Investment Management Agency (BPI) Danantara.

As a newly established super-holding entity, Danantara’s formation under Law No. 1 of 2025 and Government Regulation No. 10 of 2025 raises concerns about potential conflicts of interest, regulatory weaknesses, and a lack of oversight mechanisms.

🔎 Key Findings by CELIOS:

⚠ Ministers Holding Dual Positions → Violates the State Ministry Law and risks creating conflicts of interest.

⚠ Danantara’s Losses Not Categorized as State Finances → Contradicts the Anti-Corruption Law and creates moral hazard risks.

⚠ Lack of Oversight → The Supervisory Committee is optional and can be dissolved at any time by the President.

⚠ Legal Immunity for Danantara Officials → Officials cannot be held legally accountable, increasing the risk of abuse of power.

⚠ Potential Systemic Risks → State-owned bank assets are managed without proper risk mitigation regulations, threatening national financial stability.

⚠ Removal of Danantara Officials’ Status as State Administrators → Weakens transparency and accountability, contradicting Law No. 28 of 1999.

 

 

 

 

 

Source : https://celios.co.id/legal-issues-and-risks-in-the-regulation-of-the-establishment-of-danantara/

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