Indonesian Political Landscape Shifts With Megawati's Directives And Prabowo's New Investment Body
Recent directives from the Indonesian political sphere indicate significant changes aimed at enhancing local governance and efficiency within state assets.
Chairwoman of the Indonesian Democratic Party of Struggle (PDI Perjuangan), Megawati Soekarnoputri, has instructed all PDI Perjuangan regional heads to suspend their participation in the local government retreat scheduled at the Military Academy in Magelang. This instruction came through letter number 7295/IN/DPP/II/2025, dated Thursday, February 20, 2025, shortly after the arrest of PDI Perjuangan’s Secretary-General, Hasto Kristiyanto, by the Corruption Eradication Commission (KPK) on the same day.
"All Regional Heads and Deputy Heads of PDI Perjuangan are instructed to delay their travel to attend the retreat in Magelang from February 21-28, 2025. If en route to Magelang, they are to halt and await guidance from the Chairwoman," stated Megawati as reported on February 21, 2025.
This decision has significant repercussions for several regional heads affiliated with PDI Perjuangan, which holds considerable influence over local governance across Indonesia. Notable leaders impacted include Pramono Anung and Rano Karno (Governor and Deputy Governor of DKI Jakarta), I Wayan Koster and I Nyoman Giri Prasta (Governor and Deputy Governor of Bali), and various other governors and district heads throughout the country.
A comprehensive list details numerous regional leaders from PDI Perjuangan who received the directive to withdraw from the retreat, indicating the wide-reaching effects of this internal party decision.
Turning to another significant political move, the government under President Prabowo Subianto has launched the Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara), aimed at improving the management of state assets and promoting economic growth on a national scale. This new investment management body was officially established after the Indonesian Parliament approved the Bill on State-Owned Enterprises (RUU BUMN), marking the third amendment to the 2003 law governing such entities.
BPI Danantara is set to be inaugurated by President Prabowo Subianto on February 24, 2025. The establishment of this body is part of the government’s broader vision for Indonesia’s economic future—termed Indonesia Emas 2045—a plan intended to consolidate and optimally manage state investments.
The role of BPI Danantara is envisioned as analogous to Singapore’s Temasek Holdings, tasked with professional and transparent management of public assets. Indonesia’s government believes this centralized investment approach will improve efficiency, attract foreign investment, and bolster the country’s competitive edge on the global stage.
Notably, President Prabowo has extended invitations to all former Presidents of Indonesia, including Megawati Soekarnoputri and other political leaders, to oversee the new investment body collaboratively. He also called upon faith-based organizations such as Nahdlatul Ulama (NU) and Muhammadiyah to play active monitoring roles over BPI Danantara to safeguard the nation’s wealth.
Community engagement is set to be pivotal for the success of BPI Danantara. Various methods for public participation include promoting transparency, encouraging investment, financial education, and influencing policy through advocacy. Gomar Gultom, the head of the Indonesian Church Federation (PGI), has expressed support for the establishment of BPI Danantara, acknowledging its potential to improve coordination and execution of state enterprises projects.
Gultom raised concerns about the necessity for strict oversight of BPI Danantara, stating, “Given the enormous asset value being managed, close scrutiny is imperative. Those tasked with oversight should be independent and free from personal or political interests.”
Muhammadiyah’s leadership echoed this sentiment, advocating for community involvement to preserve Indonesia’s cultural and religious values throughout economic management.
Luhut Binsar Pandjaitan, the Chief Minister for Economic Affairs, affirmed the need for cooperation from both domestic and foreign entities to support the new investment body effectively.
He remarked, “The creation of BPI Danantara is strategically aimed at enhancing transparency and efficiency within state-owned enterprises.”
Overall, these developments reflect Indonesia’s shifting political dynamics, with local governance under increased scrutiny and newly proposed frameworks seeking to strengthen the country's economic management.