Anticipating Fund Withdrawal Movement from State-Owned Banks, Danantara Management Must Be Transparent and Professional

JAKARTA, KOMPAS - The public is awaiting certainty regarding the business processes to be undertaken by the Investment Management Agency Daya Anagata Nusantara, also known as BPI Danantara. The government should respond to this by being transparent and committed to executing it professionally.

On the social media platform X, the public is actively commenting on the implications of the existence of BPI Danantara on State-Owned Enterprises (BUMN). One of the comments is directed towards the movement of withdrawing funds from BUMN banks.

Senior Vice President of the Indonesian Banking Development Institute (LPPI) Trioksa Siahaan, on Tuesday (18/2/2025), opined that the movement to withdraw funds from state-owned banks occurred because the public is worried that Danantara will suffer the same fate as 1Malaysia Development Berhad (1MDB) in Malaysia, a strategic development company wholly owned by the Malaysian Government.

The United States Department of Justice estimates that 4.5 billion US dollars were misappropriated from 1MDB between 2009 and 2014. US and Malaysian authorities state that more than 1 billion US dollars stolen from 1MDB flowed through Najib's personal accounts. The corrupt money was used, among other things, to purchase various items, ranging from artworks to luxury homes (Kompas.id, 6/8/2020).

However, Trioksa continued that the public's concerns did not lead to a massive withdrawal of customer funds (bank run). This is because the movement is not yet massive and is still within the corridor of social media.

"It is not yet apparent that it will have an impact on the bank run as long as the public still believes in the security of their money in state-owned banks or banking. In my opinion, concerns about Danantara becoming a scandal like in Malaysia are not yet acceptable," he said when contacted from Jakarta.

Previously, the government planned to officially introduce BPI Danantara to the public on February 26, 2025. This was directly conveyed by President Prabowo Subianto while delivering a speech at the World Government Summit, virtually, on February 13, 2025.

Until now, the government and the House of Representatives have agreed on the Draft Law (UU) concerning the Third Amendment to Law Number 19 of 2003 on State-Owned Enterprises (BUMN) to be enacted into law. However, government regulations and their derivatives are still needed to serve as a legal framework for Danantara.

From state-owned banks, maintaining professionalism and focusing on business development, as well as ensuring good governance, so that business fundamentals can be maintained, thereby ensuring that the public continues to trust state-owned banks.

Trioksa added that to maintain public trust, the government needs to be transparent in managing Danantara. Additionally, the oversight function must also be strict, so it can address the concerns of the community.

"From state-owned banks, we must maintain professionalism and focus on business development, as well as maintain good governance, so that business fundamentals can be maintained, so that the public continues to trust state-owned banks," he said.

Referring to the Indonesian Banking Statistics released by the Financial Services Authority (OJK), state-owned banks' third-party funds (DPK) as of November 2024 reached IDR 3,904 trillion or grew by 9.91 percent annually. DPK of state-owned banks has a portion of 44.18 percent of the total DPK of general banks which is IDR 8,835 trillion.

Meanwhile, the consolidated net profit of the four state-owned banks in 2024 reached Rp142.92 trillion or grew 2.08 percent annually. The net profit growth slowed compared to the 2023 period which grew 22.86 percent annually.

When asked for information regarding the issue of the fund withdrawal movement that is widely circulated on social media, Bank Mandiri President Director Darmawan Junaidi stated that he did not know anything about it. "I don't know about it. Don't ask me. Ask social media," he said after attending the "IDE Katadata: Data for Growth" event in Jakarta.

Regarding Danantara, BRI President Director Sunarso welcomed Danantara because it can make the company more adaptive (agile) and truly become a corporation. This means that BRI, which will be under Danantara as a holding, will run a business based on legal principles that protect the company's directors from responsibility for decisions that are detrimental to the company (business judgment rule).

According to Sunarso, the space is needed so that BRI can continue to grow to be on par with other companies, both in the capital market and in the eyes of investors. In addition, Danantara also accommodates BRI in managing its business professionally in accordance with the corridor of the business judgment rule.

"So, I think, this (Danantara) will provide added value, especially because of its agility and the level playing field with other corporations, both domestic and foreign private companies in the domestic and global markets," he said in the Kompas 100 Outlook discussion, at the Indonesia Stock Exchange, in Jakarta, Monday (17/2/2025).

On another occasion, several parties viewed the importance of the government to ensure that Danantara can be managed by prioritizing professional aspects. This can increase investment as well as efficiency in BUMN management.

Member of the National Economic Council (DEN) and senior economist Muhamad Chatib Basri highlighted the management of Danantara which must be managed well and professionally. Thus, the existence of Danantara can increase investment by utilizing assets that have not been optimally utilized.

"This (Danantara) is a good medium for recycling assets. So, assets that have not been utilized because they are in the hands of BUMN, can be recycled, so that they become productive assets that might help attract investors. But, of course, the most important thing is that the management must be professional," he said in "SMBC Indonesia Economic Outlook 2025", in Jakarta, Tuesday (2/18/2025).

Similarly, founder and principal researcher of Indikator Politik Indonesia Burhanuddin Muhtadi, opined that Danantara's existence would cut off non-corporate interventions, especially those that are political in nature. From a political perspective, Danantara has a very positive motive.

If it goes according to plan, Burhanudin continued, Danantara's presence can avoid the negotiation process with the DPR that has made BUMN 'struggle'. This is because there is often a negotiation process between BUMN and the DPR that requires political costs or trade offs, considering that the appointment of BUMN commissioners and directors requires approval from the DPR.

"Danantara management must be careful and professional, although it is indeed somewhat problematic. In the case of Temasek, it is clear that they are driven to seek profit. While in Indonesia, especially BUMN, not all are told to seek profit, there is PSO (public service). And, that is again a tug-of-war, whether to seek profit or for PSO, it has implications or costs that are not cheap," he said.

According to Burhanudin, the investment management institution Temasek in Singapore can be a good example for the management of Danantara. However, the government should remain careful and not let Danantara suffer the same fate as 1MDB in Malaysia which was involved in a corruption scandal for political campaign needs.