TEMPO BERANI SEKALI BONGKAR RENCANA PRABOWO

Summary

The transcript discusses the formation of Dantara, a new investment management body under President Prabowo Subianto's administration. It explores concerns about the potential for reduced transparency and governance, with Dantara controlling significant state assets. Critics fear this could be used for political or military agendas, diminishing investor confidence. The conversation also touches on Prabowo’s long-standing economic ambitions inspired by his father’s ideas and comparisons to China’s economic model. Additionally, there are critiques of government policies and the effectiveness of populist measures, with some claiming that student protests may be influenced by external forces.

Takeaways

• 😀 Prabowo Subianto's formation of the Danantara investment body is seen as a high-risk move with potential global market repercussions.
• 😀 Danantara will manage 99% of state-owned enterprise (SOE) shares, which could diminish public trust in SOEs and their transparency.
• 😀 The new law surrounding Danantara, passed on February 4, 2025, removes obligations for directors to report wealth and protects them from liability for business decisions.
• 😀 The law shifts the management of state assets from the government to Danantara, essentially privatizing public wealth while minimizing oversight.
• 😀 The introduction of Danantara, alongside military-style leadership, raises concerns about potential misuse of state assets for personal or political gain.
• 😀 Market confidence in state-owned companies has significantly dropped, as evidenced by the declining share prices of several SOEs in 2025.
• 😀 Danantara's creation is linked to Prabowo's long-held vision to transform Indonesia's economy through state capitalism, inspired by China’s 1978 reforms.
• 😀 There are concerns that Danantara’s lack of checks and balances could lead to the mismanagement or misappropriation of public funds without proper audits.
• 😀 Critics argue that Danantara could lead to reduced accountability in corporate governance, undermining anti-corruption laws and diminishing the role of the legislative branch in overseeing state companies.
• 😀 The script discusses Prabowo’s ambition to replicate China’s economic model by expanding the role of SOEs in the economy and reducing democracy in governance.
• 😀 There is also a critique of the government's populist policies, such as subsidies and discounts, that seem to satisfy public demand without addressing the broader structural issues.

Q & A

What is the role of the new body, Danantara, in Indonesia's investment management?

Danantara is a new investment management body designed to oversee and manage the assets of state-owned enterprises (BUMN) in Indonesia, including their dividends. It is tasked with controlling up to 99% of the shares in these companies, and the remaining 1% will be held by the Ministry of BUMN.

Why is Danantara considered controversial by some analysts?

Danantara is considered controversial because it consolidates significant power in the hands of the president, allowing him to control vast state assets without sufficient checks and balances. It also removes the need for company executives to report their wealth, making them less accountable and potentially opening doors for misuse of public funds.

What is the potential economic risk associated with the creation of Danantara?

The potential economic risk includes weakening investor confidence in state-owned companies, as market trust may decline when state assets are controlled by a body under the president's direct influence. This could lead to a drop in stock prices and the erosion of investor confidence in the Indonesian market.

How does the structure of Danantara differ from traditional oversight of state-owned companies?

Unlike traditional oversight, where companies are subject to audits by the Supreme Audit Agency (BPK) and have transparency through the legislative process, Danantara removes these checks. It allows companies to operate like private firms, with audits conducted by private auditors rather than the government, reducing public oversight.

What was Prabowo Subianto's inspiration behind creating Danantara?

Prabowo Subianto was inspired by his father’s idea from the 1980s to create an investment body managing a portion of BUMN profits. He admired China's model of state-owned companies controlling vast resources and believed Indonesia could achieve similar economic growth by adopting a state-driven capitalism model.

What concerns have been raised about the lack of transparency in Danantara?

The primary concern is that Danantara, operating without adequate transparency, could become a tool for political manipulation. Without proper oversight and audits, there is a risk that state resources could be used for political purposes rather than national development.

How has the market responded to the announcement of Danantara?

The market response has been negative, with stock prices of state-owned companies (BUMN) dropping sharply. For instance, shares of Bank Negara and other state-owned enterprises experienced significant losses, indicating a lack of investor confidence due to the uncertainty surrounding the new structure.

What are the political implications of Danantara for Indonesia’s governance?

Politically, Danantara centralizes power under the president, reducing the checks and balances that are crucial for a democratic system. The lack of accountability could weaken Indonesia’s democratic processes and could lead to the concentration of power in the hands of a few, undermining the principles of governance.

What was the public’s response to the government's implementation of policies like free nutritious food?

Public policies such as the free nutritious food program are popular because they provide direct benefits to the citizens. However, some critics argue that these policies might not address the broader structural issues of the economy or the political system. The effectiveness of such policies depends on their implementation at the grassroots level.

Why does the speaker suggest that some of the government’s policies, such as the electricity discount, are seen as populist?

The speaker argues that policies like the electricity discount are populist because they provide immediate, tangible benefits to the public but may not address long-term economic challenges. These policies are designed to make citizens happy in the short term without addressing the underlying structural issues, which might lead to a temporary sense of satisfaction but not sustainable improvements.