Prabowo Launches Danantara on February 24, Gold Bank Two Days Later

JAKARTA, KOMPAS - President Prabowo Subianto will soon launch the Danantara Investment Management Agency on February 24, 2025. Two days later, on February 26, a gold bank will be established for the first time in Indonesia.

President Prabowo Subianto announced that a gold bank will be established for the first time in the Republic of Indonesia. "All this time, we have not had a bank for our gold, none in Indonesia. So, much of our gold is mined and flows abroad. We now want to have a special bank for gold in Indonesia," said President Prabowo in his statement regarding the obligation to keep foreign exchange earnings from natural resource exports (DHE) domestically, at the Merdeka Palace, Jakarta, Monday (17/2/2025).

The gold bank is planned to be launched on February 26. The Financial Services Authority (OJK) has already prepared the legal framework related to bullion business in Indonesia. OJK Regulation Number 17 of 2024 concerning the Implementation of Bullion Business Activities serves as a guideline for financial service institutions in conducting bullion business activities.

The guidelines in question pertain to, among other things, the scope of bullion business activities, the requirements for financial service institutions conducting bullion business activities, the licensing mechanism for bullion business activities, the phased implementation of bullion business activities, and the application of the prudential principle.

Danantara or Daya Anagata Nusantara means the economic power of investment funds which is the energy/strength of Indonesia's future. Daya means energy or strength, anagata means future, and Nusantara refers to the homeland of Indonesia.

This regulation is a derivative of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK), which mandates Financial Service Institutions (LJK) to be able to conduct bullion business activities.

Bullion activities refer to business activities related to gold in the form of gold deposits, gold financing, gold trading, gold custody, and/or other activities conducted by financial institutions. All these activities can be carried out based on sharia principles. Therefore, currently, bullion businesses are starting to be conducted in banks such as Bank Syariah Indonesia and PT Pegadaian.

In addition, the President also reaffirmed the plan to launch BPI Danantara. Previously, the President also mentioned this plan in a joint statement with Turkish President Recep Tayyip Erdogan at the Bogor Presidential Palace, Wednesday (12/2/2025).

President Prabowo said, Danantara or Daya Anagata Nusantara means the economic power of investment funds which is the energy/power of Indonesia's future. Daya means energy or power, anagata means future, and Nusantara is the homeland of Indonesia. "The country's wealth is managed, saved for our children and grandchildren," said the President.

The formation of BPI Danantara has become smoother after the amendment to Law Number 19 of 2003 concerning State-Owned Enterprises (BUMN) was passed by the DPR, Tuesday (4/2/2025). At that time, in front of the members of the council, Minister of Law Supratman Andi Agtas conveyed a number of important points in the BUMN Bill.

The main material is related to the establishment and formation of the Daya Anagata Nusantara (Danantara) Investment Management Agency (BPI) in order to optimize the management of BUMN dividends.

"The BUMN Bill will accommodate the formation of Danantara, whose role will be vital in optimizing investment and managing BUMN dividends," said Supratman.

Based on Kompas's notes, the government's initial plan was to make government regulations (PP) and presidential regulations (perpres) the legal basis for the establishment of BPI Danantara. Both draft regulations have been submitted to the Minister of State Secretary.

However, this legal basis has the potential to cause confusion considering that state-owned enterprises (BUMN) are institutions established based on law (UU). In the legal hierarchy, both government regulations (PP) and presidential regulations (perpres) are below the law (UU). As long as BPI Danantara does not have legal status equivalent to that of state-owned enterprises (BUMN), the objective of establishing Danantara as a superholding of state-owned enterprises will be difficult to achieve.