JAKARTA – House of Representatives of Indonesia (DPR RI) officially passed the revision of the State-Owned Enterprises (SOE) Law in its 12th Plenary Session on Tuesday (4/2). The law includes provisions for the establishment of the Investment Management Agency (BPI) Danantara and governance of SOE assets.

Previously, the government and DPR had outlined the organizational structure of the Daya Anagata Nusantara Investment Management Agency (BPI Danantara), which is seen as the foundation of a future SOE superholding.

In the Problem Inventory List (DIM) of the third amendment to Law No. 19/2003 on SOEs, BPI Danantara is set to have two main bodies: the Supervisory Board and the Executive Body.

Minister of SOEs Erick Thohir will serve as Chair of the Supervisory Board of BPI Danantara, with members from the Ministry of Finance and other officials or individuals directly appointed by the President. The Supervisory Board will be supported by several auxiliary units, serving a five-year term with the possibility of only one extension.

The Supervisory Board of BPI will have nine main authorities, namely:

  1. Approving the annual work plan and budget submitted by the Executive Body
  2. Evaluating the achievement of BPI Danantara’s Key Performance Indicators (KPIs)
  3. Receiving and evaluating accountability reports from the Executive Body
  4. Submitting accountability reports to the President
  5. Setting remuneration for the Supervisory Board and the Executive Body
  6. Proposing capital increases or reductions for BPI Danantara to the President
  7. Approving the annual financial statements of BPI Danantara
  8. Temporarily dismissing members of the Executive Body if necessary
  9. Approving the appointment of auditors for BPI Danantara

Meanwhile, the Executive Body of BPI Danantara was initially expected to have six members. However, the government and DPR have agreed to streamline it to two professionals, consisting of the Head of BPI Danantara and one Executive Body Member.

As an initial step, President Prabowo Subianto appointed Muliaman D. Hadad as the Head of BPI Danantara at the State Palace on October 22, 2024.

To hold a position on the Executive Body, individuals must meet three main requirements: they must be no older than 60 at the time of their first appointment, not be officials or members of any political party, and possess expertise or experience in investment, economics, finance, banking, or corporate management.

The Executive Body, which is responsible for BPI Danantara’s operational management, has six main authorities:

  1. Formulating and determining BPI Danantara’s policies
  2. Implementing policies and managing the company’s operations
  3. Drafting and proposing remuneration for the Supervisory Board and Executive Body to the Supervisory Board
  4. Preparing and submitting the annual work plan and budget (RKAT) and KPIs to the Supervisory Board
  5. Designing BPI Danantara’s organizational structure and managing personnel, including appointments, dismissals, payroll systems, remuneration, pension programs, and employee benefits

Representing BPI Danantara in legal matters, both in and out of court. (DK/ZH/KR)