TEMPO.CO, Jakarta - Deputy Minister of Finance Thomas Djiwandono addressed the role of the Sovereign Wealth Fund, Danantara. He clarified that the investment institution is designed to bolster the function of state-owned enterprises (SOEs).

Thomas, who is the nephew of President Prabowo Subianto, emphasized that Danantara has the authority to manage dividends. However, he ensured that it will not engage in the pawning of government shares in SOEs.

"It needs to be emphasized that Danantara will not pledge government shares. Government shares are underlying assets that generate dividends, which Danantara will use for investment purposes," he said during a State Budget press conference at the Finance Ministry office in Jakarta on Thursday, March 13, 2025.

Thomas deemed it necessary to affirm that the government's ownership rights of assets or equities will remain intact. Danantara will manage dividends derived from the profits and income of each SOE, channeling them into investments to generate further returns.

The government established Danantara through Law No. 1 of 2025 in a bid to strengthen SOEs as key drivers of economic growth, he added.

In fulfilling its mandate, Danantara is authorized to manage SOE dividends and approve adjustments to capital participation in state-owned companies.

Inaugurated on February 24, 2025, the institution was launched with an initial capital of Rp1,000 trillion. This capital, according to him, is sourced from state equity participation (PMN) in the form of state-owned shares and cash funds held by SOEs.

As widely reported, dividends from state-owned companies can reach approximately Rp85 trillion annually. With the establishment of Danantara, these SOE dividends, which were previously deposited into the state treasury as non-tax revenue, will now be managed by the institution.

Editor's Choice: Prabowo Holds Talks with Business Magnates on Danantara and Free Nutritious Meals

Click here to get the latest news updates from Tempo on Google News