To Boost Economy by 8%, Government Forms Investment Agency Worth IDR 1 Quadrillion

The House of Representatives inaugurated the State-Owned Enterprises (BUMN) Law on Tuesday (04/02). This regulation, among other things, lays the legal foundation for a new entity called Daya Anagata Nusantara (Danantara) to manage state assets of up to Rp1 quadrillion.

Minister of State-Owned Enterprises Erick Thohir said that this regulation paves the way for Danantara to regulate state-owned companies in the country. Later, Danantara will be established through cash, state-owned assets, or government-owned shares.

Erick has not confirmed which state-owned companies will be transferred to Danantara. However, several media outlets have suggested that the agency could manage seven other state assets, including major companies such as PT Bank Mandiri Tbk and PT Pertamina (Persero).

For information, Danantara aims to mobilize more funds for President Prabowo Subianto's strategic projects, including the free school lunch program and targeting food and energy self-sufficiency without blowing the budget.

The government investment agency is expected to increase economic growth by up to 8% during the Red and White Cabinet.