The Indonesia Investment Authority (BPI), officially known as Daya Anagata Nusantara or Danantara, has publicly addressed its strategy of allocating funds from State-Owned Enterprise (BUMN) dividends into Government Securities (SBN). This explanation comes as a direct response to recent criticisms from Finance Minister Purbaya Yudhi Sadewa, who questioned Danantara’s decision to place such a substantial portion of its funds in SBN.
Ali Setiawan, Danantara’s Managing Director of Treasury, clarified that dividends are indeed a primary and regular source of capital for the institution. This capital is meticulously managed by the treasury division to finance a diverse range of initiatives, including strategic projects, commercial ventures, and public investments. “Funding and capital injections into Danantara regularly originate from the dividends of all State-Owned Enterprises within Danantara’s portfolio,” Ali stated during a media briefing in Jakarta on Friday, November 28, 2025.
Strategic Diversification: Avoiding Undue Risk
Ali emphasized that in managing its significant capital, Danantara intentionally avoids allocating all its funds solely to high-risk or exclusively long-term investments. He highlighted that this approach is consistent with global best practices among sovereign wealth funds (SWFs). “Across the world, even the most aggressive sovereign wealth funds—those primarily focused on risky and long-term projects, such as Saudi Arabia’s PIF or Malaysia’s Khazanah Nasional Berhad—typically reserve 20-30 percent of their portfolios in highly liquid instruments,” Ali elaborated. This strategy, he noted, is crucial for maintaining a balanced and prudent financial posture.
Ensuring Essential Liquidity for Operations
Ali further stressed that investing in Government Securities (SBN) provides Danantara with vital liquidity, ensuring that funds can be accessed promptly whenever required. “These liquid investments guarantee that funds can be readily liquidated and withdrawn, or even utilized through mechanisms like repurchase agreements (repo) to secure market liquidity when necessary,” Ali explained. He underscored that as the steward of funding decisions, the treasury division cannot commit all capital to illiquid assets. “Every department responsible for managing a balance sheet must carefully consider how to strategically deploy funds. It’s simply not feasible to have an entirely illiquid portfolio,” Ali asserted, reinforcing the critical need for maintaining robust liquid reserves.
Finance Minister Purbaya’s Critique and Danantara’s Pledge
The Finance Minister’s pointed remarks followed a meeting of Danantara’s Supervisory Board (Dewas) on October 15, 2025. Minister Purbaya Yudhi Sadewa specifically scrutinized the substantial volume of State-Owned Enterprise dividends that Danantara had placed in Government Securities, openly questioning the investment authority’s expertise. “I had to offer some criticism earlier. If you’re parking so many bonds with the government, what exactly is your specialized expertise?” Purbaya challenged at Wisma Danantara, Jakarta.
Minister Purbaya’s comments were initially prompted by Danantara’s proposal for the state budget (APBN) to assist in resolving the debt of the Whoosh high-speed rail project. Purbaya contended that Danantara possessed ample funds, receiving over IDR 80 trillion annually from BUMN dividends. He expressed confidence that Danantara’s capital would continue to grow year-on-year through its strategic investments. “I am certain their funds will only increase each year, likely exceeding IDR 90 trillion, and a portion of it, they say, will again be placed in my bonds—with the government again,” Purbaya noted with a hint of skepticism.
The Supervisory Board meeting was attended by key figures including the Head of BPI Danantara, Rosan Roeslani; Chief Operating Officer (COO) Dony Oskaria; and Chief Investment Officer (CIO) Pandu Patria Sjahrir. Following the discussion, Purbaya indicated that Danantara had committed to refining its investment approach. “They explained this situation was primarily due to the last three months, citing a lack of time,” Purbaya shared. He added that Danantara plans to pivot towards greater investment in projects that actively stimulate economic growth in the future. “For future projects, they will make adjustments. This will minimize their holdings in government bonds and instead focus more on projects that foster economic expansion,” Minister Purbaya concluded.
Summary
The Indonesia Investment Authority (Danantara) has responded to Finance Minister Purbaya Yudhi Sadewa’s criticism regarding its strategy of allocating State-Owned Enterprise (BUMN) dividends into Government Securities (SBN). Ali Setiawan, Danantara’s Managing Director of Treasury, clarified that dividends are a primary capital source, and investing in SBNs provides vital liquidity for operations while ensuring strategic diversification. He emphasized this approach aligns with global best practices for sovereign wealth funds, which maintain liquid reserves to avoid an entirely illiquid portfolio.
Minister Purbaya had questioned Danantara’s expertise, particularly after their proposal for state budget assistance for the Whoosh project despite receiving substantial annual BUMN dividends. Following a Supervisory Board meeting, Danantara committed to refining its investment approach. They plan to minimize future SBN holdings and instead focus more on projects that actively stimulate economic growth, attributing the recent SBN allocations to a lack of time.
