07 Jan 2026
Government Regulation No. 34 of 2025: Asset Management Framework for Danantara

Overview

The establishment and operational framework of Daya Anagata Nusantara Investment Management Agency (“Danantara”) is grounded in the recent amendments to the State-Owned Enterprises Law (Law No. 19 of 2003, as amended by Law No. 16 of 2025) (the “SOE Law”), which introduce Danantara as a strategic state-owned holding company. In furtherance of this framework, Government Regulation No. 34 of 2025 on Procedures for the Management of Assets of the Daya Anagata Nusantara Investment Management Agency (“GR 34/2025”), which took effect on 5 August 2025, provides the implementing rules governing the management of Danantara’s assets.

Danantara has been tasked with a straightforward but consequential mission: to strengthen, consolidate, and optimize state-owned enterprise (“SOE”) investments by professionalizing the management of state capital. To support this mandate, the Government has introduced clearer governance standards, firmer reporting requirements, and a more transparent accountability framework to align SOE asset management with market-based investment practices and international expectations on transparency.

With Danantara now established and GR 34/2025 setting out its operating framework, Indonesia is positioning its state-asset portfolio for greater commercial discipline and stronger investor visibility. The regulation is expected to impose clearer governance standards and tighten performance oversight, signaling to markets that the country aims to treat its state-capital portfolio as a scalable investment platform rather than a fiscal burden. 

Authority and Asset Management Principles

GR 34/2025 puts Danantara’s mandate under Articles 3H(4) and 3I(3) of the SOE Law into practical effect by setting out the procedures for acquiring, using, and transferring assets under its control. Danantara must prepare asset-management plans, keep accurate records, and secure the necessary approvals any transfers, ensuring that transactions involving state property are transparent and in compliance with statutory requirements. The framework is designed to safeguard state resources, improve efficiency, and maximize asset value through more strategic deployment of investment.

Article 2 GR 34/2025 makes clear that all assets placed under Danantara, whether from state capital injections, asset transfers, or other lawful sources, fall within its authority and responsibility.[1] Their management must follow good corporate governance principles, embedding transparency, accountability, prudence, and risk mitigation as standards practice.

Investment Structure, Asset Sources, and Utilization 

GR 34/2025 provides a structured framework for how Danantara must plan and execute its investment. Each investment must have clear objectives, detailed planning, defined expectations on risk and return, and measurable performance indicators. Periodic evaluations are mandated to ensure discipline and keep investment decisions aligned with national priorities.

The regulation identifies several lawful sources of assets under Danantara’s management, including:[2]

• Capital injections;

• Returns from asset development;

• Transfers of state or SOE assets;

• Grants; and/or

• Other lawful sources.

These assets may take the form of shares, securities, cash or cash equivalents, receivables, real estate, or other tangible or intangible property. GR 34/2025 also specifies permissible uses, including reserves, operational expenditures, investments, contributions to the State, and other lawful purposes.[3] 

Importantly, the regulation clarifies that profits or losses arising from asset management belong to Danantara and are not directly attributable to the State.[4] Profits may be allocated for mandatory reserves, retained earnings, and contributions to the State.[5] To enhance asset value, Danantara may enter into cooperation agreements with third parties, including investment and operational holding structures.[6] Such cooperation may be arranged through tenders, limited selection, or direct appointment, and can be carried out via management authority or other agreed forms of collaboration.

Danantara is also authorized to transfer assets through sale or other lawful means, as well as conduct direct or indirect investments in various asset classes, such as securities, equity, receivables, and real property.[7] Collectively, these provisions empower Danantara to manage and optimize state assets more dynamically while adhering to principles of good governance, transparency, and accountability.

Valuation, Accounting, and Reporting

Consistent with Article 3H of the amended SOE Law, GR 34/2025 mandates Danantara to adopt standardized practice for valuation, accounting, and reporting. Danantara must apply fair-market valuation principles, maintain robust accounting standards, and provide periodic reporting on asset positions, investment outcomes, and financial performance.[8] These requirements create a more predictable and transparent reporting environment and allow for structured oversight by the Ministry of Finance, the Supreme Audit Agency (BPK), and other supervisory bodies. The framework is intended to support informed decision-making and reinforcing trust in how Indonesia manages its state assets.

Conclusion

GR 34/2025 represents a pivotal step in implementing the latest SOE Law reforms into practice. By setting out a clear and comprehensive framework for asset management under Danantara, the regulation aims to enhance transparency, accountability, and operational discipline. These measures are expected to strengthen SOE performance, make state assets more attractive to strategic investors, and contribute to longer-term economic growth. GR 34/2025 also provides the legal foundation for Danantara’s operations, ensuring that asset management follows the principles of good corporate governance, transparency, accountability, and sound risk management. 

For SOEs whose assets may be consolidated into or managed through Danantara, the regulation signals a move toward more central oversight, clearer performance expectations, and higher standards for valuation, documentation, and reporting. Danantara’s authority to collaborate with third parties through joint ventures, strategic partnerships, and other cooperative structures also creates new entry points for private and institutional investors to participate in Indonesia’s state asset portfolio within a more structured and compliance-driven environment. SOEs, lenders, and investors would be well served to monitor the rollout of GR 34/2025 and begin aligning internal governance, risk frameworks, and transaction structures with this new regime.

By partners Ayik C. Gunadi (agunadi@abnrlaw.com), Novario Asca H (nhutagalung@abnrlaw.com), and associates Joshua Situmeang (jsitumeang@abnrlaw.com), and Tanisha Maharani (tmaharani@abnrlaw.com)

This ABNR News and its contents are intended solely to provide a general overview, for informational purposes, of selected recent developments in Indonesian law. They do not constitute legal advice and should not be relied upon as such. Accordingly, ABNR accepts no liability of any kind in respect of any statement, opinion, view, error, or omission that may be contained in this legal update. In all circumstances, you are strongly advised to consult a licensed Indonesian legal practitioner before taking any action that could adversely affect your rights and obligations under Indonesian law.