Jakarta. The House of Representatives (DPR) is set to bring the revised draft of the State-Owned Enterprises (SOEs) Law to the Plenary Session on Tuesday, which includes provisions for the establishment of investment superholding Daya Anagata Nusantara (Danantara), that would manage $600 billion in assets by consolidating government-run businesses.

Deputy Speaker of the DPR, Sufmi Dasco Ahmad confirmed the legislation would be brought to the full House for approval on Feb. 4.

The revised BUMN law, which has received backing from both the DPR’s Commission VI and government representatives, includes several critical updates. Among the most notable is the introduction of provisions concerning the formation and governance of Danantara, which is expected to play a central role in managing state-owned enterprises' investments. The law stipulates that the minimum capital required for Danantara will be Rp 1,000 trillion, or $60 billion.

The revised BUMN law introduces several key provisions aimed at modernizing and optimizing the operations of state-owned enterprises. These include:

1. Expanding and adjusting the definition of SOE to allow for more efficient operations in line with current regulatory developments.
2. Introducing a clearer framework for subsidiary companies of BUMNs, which were not adequately addressed in the previous law.
3. Establishing the Daya Anagata Nusantara Investment Management Agency (BPI Danantara), which will handle investments and operational matters for state-owned enterprises.
4. Strengthening governance structures with more detailed rules for privatization, corporate actions, and asset management.
5. Ensuring better inclusion for women, people with disabilities, and local communities within SOEs' workforce and leadership.
6. More detailed provisions on restructuring, mergers, acquisitions, and the creation or dissolution of subsidiaries.
7. Stronger oversight mechanisms, including internal audits and collaboration with SMEs and cooperatives.

The revisions also aim to enhance the competitiveness and sustainability of SOEs through clearer regulations on corporate governance, employee training, and community engagement, particularly in areas around SOE operations.

State-Owned Enterprises Minister Erick Thohir said the establishment of BPI Danantara is a pivotal aspect of the revised BUMN framework. Thohir explained that the new investment body will be crucial for driving growth and modernizing the sector, supporting the government's broader economic development agenda.

“The formation of BPI Danantara, along with its structure and governance, will lay the foundation for a more strategic and sustainable approach to managing Indonesia's state-owned enterprises,” Thohir said in a recent working meeting with the DPR.

President Prabowo Subianto intends to establish Danantara as an investment management body that would be akin to Singapore’s Temasek. According to media reports, Danantara will start by combining the assets of 7 state-owned enterprises (SOEs). They are mining holding MIND ID, telco firm Telkom, utility PLN, oil company Pertamina, as well as banking giants BRI, Mandiri and BNI.