Danantara emerges as Indonesia’s latest Sovereign Wealth Fund, designed to optimize state assets and drive strategic investments. As outlined in Law Number 1 of 2025 on the Third Amendment to Law Number 19 of 2003 on State-Owned Enterprises and Government Regulation Number 10 of 2025 on the Organization and Governance of the Daya Anagata Nusantara Investment Management Body, Danantara plays a pivotal role as a key investment catalyst in managing state-owned enterprise dividends and enhancing economic value. With the business judgment rule principle in place, Danantara is granted autonomy in decision-making, ensuring that investment strategies align with commercial viability while remaining shielded from state loss classifications. However, further enhancement at the regulatory level is necessary to fully refine Danantara’s functions and ensure effective implementation. Find out more our insights about this topic in our Legal Brief publication.