Glass Lewis issued a controversy alert on Thursday for Bank Rakyat Indonesia (IDX:BBRI) shareholders ahead of the company's annual shareholder meeting on March 24.

The alert relates to the consolidation of the state-owned bank into Danantara, Indonesia's new sovereign wealth fund.

Danantara's lack of transparency could dampen governance oversight and increase management risks, Glass Lewis said.

Risks from the transaction could amplify concerns about the compensation of the bank's nonexecutives, lack of information regarding bad loan receivables, potential adverse impact on shareholder rights, and limited data on new nominees and their connections to the bank.

The alert's rationale relates to relevant media coverage, precedent-setting and unique ESG issue, and potential material ESG risk and falls under oversight issue, shareholder rights, and other governance issue.