The transparency of Indonesia’s state investment management is under intense scrutiny. The Danantara Indonesia sovereign wealth fund has yet to release its 2025 financial report, despite having been operational for over a year. This delay has sparked significant criticism regarding its corporate governance, especially when measured against the standards of global peers.
In contrast, major international sovereign wealth funds (SWFs), such as Norway’s Government Pension Fund Global (GPFG) and Singapore’s Temasek Holdings, maintain a rigorous schedule of disclosing their financial results and investment performance annually. This lack of transparency from Danantara has prompted public debate over its accountability.
In response to the criticism, Danantara’s communications team explained that the delay is due to the institution’s unique status as a sui generis body, which dictates specific reporting protocols. “As a sui generis entity, Danantara Indonesia reports its annual financial statements directly to the government auditor, the Supreme Audit Agency (BPK),” the statement noted on Friday, May 15.
A sui generis institution is a specialized body established by law that operates outside the traditional central or regional government structure, maintaining autonomous authority to perform specific state functions. The reports submitted to the BPK are subsequently presented to the legislature for review.
Governance Concerns and Regulatory Compliance
The NEXT Indonesia Center has argued that Danantara should have disclosed its performance report no later than two months after the end of the fiscal year. Herry Gunawan, a state-owned enterprise (SOE) analyst at the center, characterized the delay as a failure of governance commitment.
“This absence of transparency suggests a lack of commitment to good governance, which creates significant risks for the management of the SOEs under its purview,” Herry stated on May 11. He pointed to potential violations of at least three regulations, including Government Regulation Number 8 of 2006, which mandates that performance reports be submitted within two months of the fiscal year’s close.
“Beyond the potential sanctions, delaying the annual report is inappropriate and sets a poor precedent for SOE management,” he added. Herry emphasized that President Prabowo Subianto should address the growing culture of regulatory disregard within state institutions, noting that it is difficult to justify why an organization led by high-profile officials would operate in such an opaque manner.
Furthermore, as a public institution, Danantara is bound by Law Number 14 of 2008 concerning Public Information Openness. Article 9 of this law stipulates that financial reports are mandatory public information that must be announced periodically, covering profiles, program summaries, and performance data.
Global Benchmarks: Norway and Singapore
The Norwegian Government Pension Fund Global (GPFG) remains the gold standard for transparency. Managed by Norges Bank Investment Management (NBIM), the fund oversees assets nearing US$ 2 trillion as of early 2026. Derived from Norway’s oil and gas revenues, its investments in global stocks, bonds, and renewable energy are fully disclosed on its official website. Despite a 66.46% year-on-year drop in comprehensive income in 2025—largely due to foreign exchange losses—the fund maintains total accountability through its detailed reporting.
Similarly, Singapore’s Temasek Holdings provides regular performance updates. For the fiscal year ending March 31, 2025, Temasek reported a surge in performance, with a net profit of S$ 23.5 billion, a 335.19% increase from the previous year. By regularly publishing its net portfolio value and income statements, Temasek reinforces the trust of its investors and the public.
Indonesia’s Dual-Fund Landscape
Indonesia currently operates two distinct sovereign wealth funds: Danantara and the Indonesia Investment Authority (INA). While both serve to drive national economic growth, they operate under different legal frameworks. Danantara is governed by Law Number 1 of 2025, while the INA operates under Law Number 11 of 2020 and subsequent regulations following the Job Creation Law.
The INA has demonstrated a commitment to transparency, reporting a net profit of Rp 7.44 trillion in 2025, a 37.30% increase from the previous year. With cumulative investments reaching Rp 74.5 trillion alongside co-investors, the INA continues to attract foreign direct investment, focusing on sectors such as green energy, logistics, and digital infrastructure. Its ability to balance professional investment agility with public oversight serves as a vital comparison point for the expectations placed upon Danantara.
Summary
Danantara, Indonesia’s sovereign wealth fund, faces mounting criticism for failing to release its 2025 financial report despite over a year of operations. While the organization claims its status as a sui generis entity allows for reporting directly to the Supreme Audit Agency, critics argue this violates both the Public Information Openness Law and government mandates requiring timely disclosure. Analysts emphasize that this lack of transparency sets a poor governance precedent and raises significant risks for the state-owned enterprises managed by the fund.
Global leaders in sovereign wealth management, such as Norway’s Government Pension Fund Global and Singapore’s Temasek Holdings, maintain high standards of accountability by regularly publishing detailed investment performance and financial results. In contrast, Indonesia’s other sovereign wealth fund, the Indonesia Investment Authority (INA), has successfully balanced investment agility with transparency, reporting significant net profits and growth. These international and domestic examples highlight the growing pressure on Danantara to align its operational practices with established standards of public disclosure.
