Legal issues and risks in the regulation of the establishment of Danantara

CELIOS has just released a Brief Analysis on various legal issues in the regulations governing the Investment Management Agency (BPI) Danantara. As a newly established super-holding entity created under Law No. 1 of 2025 and Government Regulation No. 10 of 2025, Danantara’s presence raises concerns about potential conflicts of interest, weak regulation, and a lack of oversight mechanisms.

CELIOS’ findings highlight several critical issues: ministers holding dual positions, which could violate the State Ministry Law; Danantara’s losses are not classified as state finances, creating room for moral hazard; and accountability is weakened because Danantara officials are no longer classified as state administrators. In addition, the supervisory committee is optional and can be dissolved by the president at any time, Danantara officials are granted legal immunity, and state-owned bank assets are managed without adequate risk-mitigation regulations—all of which could pose systemic risks to national financial stability.

CELIOS has just released a brief analysis on the legal challenges surrounding the regulation of the Investment Management Agency (BPI) Danantara. As a newly established super-holding entity created under Law No. 1 of 2025 and Government Regulation No. 10 of 2025, Danantara raises concerns over potential conflicts of interest, weak regulatory safeguards, and the absence of strong oversight mechanisms.

CELIOS highlights several critical issues: ministers holding dual positions in violation of the State Ministry Law, Danantara’s financial losses excluded from state finances—creating a moral hazard risk, and the weakening of accountability as Danantara officials are no longer classified as state administrators. Moreover, the supervisory committee is optional and can be dissolved at any time by the president, while Danantara officials enjoy legal immunity. The management of state-owned bank assets without adequate risk mitigation regulations further increases systemic risks to national financial stability.

Narahubung / Contact Person :

Muhamad Saleh (+62 82133290067)

CELIOS_Danantara Legal Risk Analysis Download

CELIOS_Legal Risk Analysis of Danantara Download