PP 19 2026

Indonesia has revised the governance framework for its sovereign investment manager, the Badan Pengelola Investasi Daya Anagata Nusantara, known as Danantara. Government Regulation 19 of 2026 (Peraturan Pemerintah Nomor 19 Tahun 2026 tentang Perubahan atas Peraturan Pemerintah Nomor 10 Tahun 2025 tentang Organisasi dan Tata Kelola Badan Pengelola Investasi Daya Anagata Nusantara) was set in Jakarta on 8 April 2026 and recorded in the State Gazette for 2026 under Number 39. It amends the original organisational regulation issued in 2025, adjusting how the body relates to the state, how investment holdings are capitalised, and how the agency reports its plans and budgets.

The trigger for the amendment is a change in the law sitting above it. The general elucidation explains that the revision aligns Danantara's governance with newer legislation, in particular Law 16 of 2025, the fourth amendment to Law 19 of 2003 on State-Owned Enterprises (BUMN). That higher law reshaped terminology and shifted the subjects holding authority over BUMN, including the regulator role, so the implementing regulation for Danantara had to be brought into line. The stated aims are legal certainty, more effective exercise of the body's powers, and clearer accountability in its governance. A second purpose is to set out in more detail how corporate entities under the body are formed and run.

The most consequential change is the insertion of Pasal 31A, which opens a direct fiscal channel into the investment holdings that Danantara establishes. Where a Holding Investasi is set up under Pasal 29B paragraph (2) letter b to support national development, the state may make a capital injection (penyertaan modal negara) into that holding, drawn from the state budget (APBN). The regulation lists what the injection may consist of: fresh funds, state-owned goods (barang milik negara), state receivables held against BUMN or limited liability companies, and other state assets. Beyond that, such a holding may also request state support in the form of a capital injection through the body itself. The provision then attaches a status to the recipient: once it receives this state capital, the Holding Investasi established under Pasal 29B paragraph (2) letter b becomes a BUMN designated as a fiscal instrument (alat fiskal). The regulation also names PT Danantara Investment Management as the entity carrying out the function described in Pasal 29B paragraph (2) letter a.

A second set of provisions deals with planning and oversight. Pasal 32A governs the submission of the body's annual work plan and budget, referenced to Pasal 21A paragraph (1), and the body's work plan under Pasal 21B. It specifies that the Executive Body (Badan Pelaksana) begins delivering these documents to the Supervisory Board (Dewan Pengawas) for the work plan and annual budget covering the 2028 book year. The same article requires that the submission follow good practice while respecting governance standards and the prevailing laws. The amendment also inserts Pasal 32B between Pasal 32 and Pasal 33, extending the transitional and procedural detail around these reporting duties. Under Pasal II, the regulation takes effect on the date of its promulgation.

The implications fall into two areas. First, Pasal 31A formalises a state-funded route for building up Danantara's investment holdings and ties a clear legal label to the result: a holding that takes state capital becomes a BUMN and an instrument of fiscal policy. That label matters because it places the entity inside the BUMN accountability regime and the broader fiscal framework rather than leaving it as a purely commercial vehicle. The range of permissible contributions, from cash to receivables to physical assets, gives the state flexibility in how it seeds these holdings. Second, the timing rule in Pasal 32A sets the first full reporting cycle to the Supervisory Board at the 2028 book year, which signals a phased start to the planning and oversight machinery rather than an immediate one. For observers tracking how the new BUMN law cascades into subordinate regulation, this amendment is a concrete example of that cascade reaching Danantara.

Regulatory Context

The amendment sits within a chain of legislation. Its parent regulation, PP 10 of 2025, set the original organisation and governance rules for Danantara, and the present revision adjusts that text rather than replacing it. The general elucidation ties the changes to Law 16 of 2025, the fourth amendment to Law 19 of 2003 on State-Owned Enterprises, and frames them as updates to terminology and to the subjects holding authority, including the BUMN regulator. The fiscal mechanism in Pasal 31A connects the regulation to the state budget through penyertaan modal negara, while the status it assigns places a recipient Holding Investasi inside the BUMN regime as a designated fiscal instrument. The planning duties in Pasal 32A reference Pasal 21A paragraph (1) and Pasal 21B and fix the first applicable cycle at the 2028 book year. Pasal 32B and the entity designation in Pasal 29B complete the inserted provisions, and Pasal II sets the effective date at promulgation on 8 April 2026. Together these articles map how state capital may enter Danantara's holdings and how the body reports its plans and budgets to its Supervisory Board.

Methodology: This memo summarises the official regulation text and is not legal advice; report corrections to contact@crpg.info.

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