Tag:

assets

Prabowo Subianto Streamlines State Assets as Danantara Dissolves 250 BUMBs to Save Fifty Trillion Rupiah in Operational Costs

by Jia Lissa July 20, 2026

written by Jia Lissa

President Prabowo Subianto has announced a landmark shift in Indonesia’s economic management, revealing that the consolidation of state-owned entities under the Daya Anagata Nusantara (Danantara) super-holding agency has resulted in the dissolution of 250 state-owned enterprises (BUMBs) as of July 2026. During a Plenary Cabinet Session held at the State Palace in Jakarta on Monday, July 20, 2026, the President detailed how this massive restructuring effort is projected to save the Indonesian government approximately Rp50 trillion in annual operational expenditures. This sweeping reform marks a definitive end to the era of bloated state bureaucracies, aiming to transform Indonesia’s fragmented state assets into a lean, professional, and globally competitive sovereign wealth fund.

The President’s address highlighted the sheer scale of inefficiency that had previously plagued the state-owned sector. By eliminating redundant entities and streamlining management structures, the government has successfully cut significant "overhead" costs that contributed little to the national interest. According to President Prabowo, the Rp50 trillion saved represents capital that was previously locked in routine expenses, including the salaries of numerous boards of directors and commissioners, office rentals, electricity bills, transportation costs, and various administrative overheads associated with maintaining hundreds of separate corporate shells.

The Fiscal Impact of Structural Consolidation

The decision to shutter 250 state-owned entities is rooted in a data-driven approach to fiscal responsibility. For decades, the Indonesian government maintained a vast array of BUMBs, many of which operated with overlapping mandates or existed as "zombie" companies that relied on state injections (PMN) rather than generating profit. The consolidation into Danantara has allowed the government to identify these redundancies and liquidate or merge entities that were no longer viable or strategic.

President Prabowo emphasized that the Rp50 trillion in savings is not merely a budgetary figure but a reallocation of national wealth toward more productive sectors. "There are reports that with the closure of 250 BUMBs, the overhead and routine costs that can be saved amount to Rp50 trillion," the President stated. "That Rp50 trillion includes salaries for directors, salaries for commissioners, building rentals, electricity payments, transport payments, and operational meetings. This is a significant sum that can now be utilized for the direct benefit of the people."

Danantara Pangkas 250 BUMN, Prabowo: Biaya yang Diselamatkan Rp50 Triliun

The savings are expected to provide additional fiscal space for the administration’s flagship social and infrastructure programs. By reducing the "leaking" of state funds into unproductive administrative costs, the government intends to redirect these resources toward human capital development, such as the Free Nutritious Meal (MBG) program, and the modernization of the agricultural sector to ensure food sovereignty.

Danantara: A New Paradigm for Asset Management

The establishment of Daya Anagata Nusantara (Danantara) represents the centerpiece of President Prabowo’s economic transformation agenda. Unlike the previous management model under the Ministry of State-Owned Enterprises, which often balanced corporate goals with political and bureaucratic pressures, Danantara is designed to operate as a world-class sovereign wealth fund (SWF). Its primary mandate is to manage the nation’s strategic assets with a high degree of professionalism, transparency, and a long-term investment horizon.

The President revealed that the total value of assets currently managed under the Danantara umbrella has surpassed the $1,000 billion (USD 1 trillion) mark. This milestone places Indonesia in the same league as major global sovereign wealth funds, such as Singapore’s Temasek Holdings or the Government of Norway’s Pension Fund Global. By consolidating assets from various sectors—including energy, telecommunications, finance, and infrastructure—Danantara gains the leverage to negotiate better international partnerships and attract high-quality foreign direct investment.

"Danantara is a sovereign fund where the savings, wealth, and assets of the state are united, consolidated, and managed neatly," Prabowo explained. He further described the fund as "energy for the future of Indonesia," serving as a strategic reserve for future generations, including the "children, grandchildren, and great-grandchildren" of the nation.

Historical Context and the Path to Reform

The journey toward this massive restructuring began shortly after President Prabowo took office, following a series of audits that exposed the inefficiencies within the Ministry of BUMN’s portfolio. For years, economists had warned that the sheer number of state-owned companies made effective oversight nearly impossible. Many smaller subsidiaries and sub-subsidiaries were found to be draining resources from their parent companies, creating a web of financial instability.

The timeline for this transformation was aggressive. Beginning in late 2024, the administration initiated a multi-phase plan to categorize BUMBs into "strategic," "commercially viable," and "redundant" groups. The 250 entities dissolved by July 2026 were largely those falling into the redundant category—companies that either provided services already covered by other state agencies or those that had failed to turn a profit for several consecutive years.

This reform also addresses long-standing grievances regarding the appointment of "political" commissioners and directors. By moving these entities under Danantara, the selection process for leadership roles has shifted toward a merit-based system, overseen by professional investment managers rather than purely political appointees. This shift is intended to depoliticize the management of state assets and ensure that every rupiah invested by the state yields a tangible return.

Addressing Economic Disparities and Resource Management

During the same cabinet session, President Prabowo expressed his continued frustration with the irony of Indonesia’s resource wealth versus its market realities. He referenced past crises, such as the scarcity of cooking oil in a nation that stands as the world’s largest producer of crude palm oil (CPO). The President characterized such occurrences as "illogical" and a symptom of poor management and rent-seeking behavior.

The consolidation of assets under Danantara is seen as a safeguard against such market failures. By having a centralized, professionally managed entity oversee strategic commodities, the government can better intervene in supply chains to ensure domestic availability and price stability. The $1 trillion asset base provides Danantara with the "firepower" to stabilize markets and invest in downstream industries that add value to raw materials before they are exported.

Furthermore, the President defended his administration’s spending on social programs, such as the Free Nutritious Meal initiative, against critics who labeled them as wasteful. He pointed out that while social spending is often scrutinized, the "evaporation" of thousands of trillions of rupiah due to corruption and mismanagement in the past rarely met with the same level of academic or political protest. The Rp50 trillion saved from BUMB restructuring serves as a direct rebuttal to critics, proving that the administration is capable of finding internal efficiencies to fund its social mandate.

Implications for the National Economy and Global Investors

The emergence of Danantara as a trillion-dollar fund has significant implications for Indonesia’s credit rating and investment climate. Global rating agencies have historically viewed the "contingent liabilities" of Indonesia’s many BUMBs as a risk factor for the country’s sovereign debt. By cleaning up the balance sheets and closing down non-performing entities, the government is effectively reducing its fiscal risk profile.

For international investors, a consolidated and professionally managed Danantara offers a more transparent entry point into the Indonesian market. Rather than navigating the complex bureaucracy of multiple ministries, investors can now partner with a single, sophisticated entity that speaks the language of global finance. This is expected to accelerate infrastructure development and the transition to renewable energy, as Danantara can provide the necessary co-investment and state guarantees required for large-scale projects.

Conclusion: A Vision for Generational Wealth

The transformation of the state-owned sector into a sovereign wealth fund model is perhaps the most significant structural change in the Indonesian economy since the 1998 reforms. By July 2026, the dissolution of 250 entities has proven that the government is willing to take bold, and sometimes difficult, steps to ensure the long-term health of the national treasury.

President Prabowo Subianto’s vision for Danantara extends beyond mere bookkeeping. It is an attempt to build an institutional fortress that protects Indonesia’s wealth from the volatility of global markets and the inefficiencies of domestic politics. As the fund continues to grow and professionalize, the Rp50 trillion in annual savings will likely be remembered as the first dividend of a new era of Indonesian economic sovereignty.

The administration’s focus now shifts to the remaining state-owned giants, ensuring that they operate at peak efficiency under the Danantara umbrella. With a trillion-dollar asset base and a mandate for reform, the Indonesian government is signaling to the world that it is no longer content with just being a resource-rich nation; it intends to become a global financial powerhouse, securing the prosperity of its citizens for generations to come.

July 20, 2026 0 comment

Entertainment and Celebrity

Understanding the Concept of Harta Gono-Gini in Islamic Law and the Legal Framework of Joint Assets in Modern Marriage

by Basiran July 18, 2026

written by Basiran

The intersection of cultural tradition and religious doctrine often creates complex legal landscapes, particularly concerning the division of assets following the dissolution of a marriage. In many Southeast Asian societies, specifically Indonesia, the term "harta gono-gini" is a household name, referring to the joint property acquired by a couple during their wedlock. However, a deeper examination of classical Islamic jurisprudence (Fiqh) reveals that this concept does not exist in an explicit, codified form within the foundational texts of the Sharia. Instead, the traditional Islamic view emphasizes a strict separation of property between husband and wife, a principle that ensures individual financial autonomy but often clashes with modern civil laws and contemporary social realities where both spouses contribute to the household economy.

The Historical and Etymological Origins of Joint Property

The term "harta gono-gini" finds its roots in Javanese philosophy and customary law (Adat), rather than Arabic or Islamic terminology. Historically, the word "gono" refers to the husband, while "gini" refers to the wife. Under Javanese tradition, any assets accumulated during the marriage are viewed as a collective pool, regardless of which spouse physically earned the income or whose name appears on the title deed. This cultural framework was designed to protect the economic stability of the family unit and ensure that a wife, who might have focused on domestic labor, was not left destitute upon the death of her husband or the termination of the marriage.

In contrast, classical Fiqh was developed in a socio-economic context where the roles of the provider and the homemaker were more rigidly defined and legally separated. Under the classical Sharia framework, the husband is solely responsible for providing nafkah (maintenance), which includes food, clothing, and shelter. Consequently, any property he acquires remains his, and any property the wife brings into the marriage or earns during it remains hers. This separation was intended to protect the woman’s financial independence, ensuring that her husband could not seize her dowry (mahr) or her inheritance for his own use.

The Jurisprudential Gap: Classical Fiqh vs. Modern Reality

Islamic scholars, such as Ustaz Dr. Erwandi Tarmizi, M.A., have noted that the term "harta gono-gini" is absent from classical Islamic literature. According to Tarmizi, the concept is a product of societal evolution rather than a direct mandate from the Quran or Sunnah. In the early eras of Islam, the phenomenon of a husband and wife jointly operating a business or both working outside the home to pool resources was not the standard model of household economics. Therefore, the early fuqaha (jurists) did not feel the need to formulate specific rules for "joint property" because ownership followed the person who acquired the asset.

The fundamental rule in Islam is that ownership is tied to the individual. This is supported by the principles found in the Quran, such as in Surah An-Nisa, which outlines the rights of individuals over their wealth once they reach maturity and sound judgment. Ustaz Muhammad Idris Lc. emphasizes that Islamic law provides robust protection for individual ownership. He cites Surah An-Nisa, Verse 6: "And test the orphans [in their abilities] until they reach marriageable age. Then if you perceive in them sound judgement, release their property to them." This verse establishes that once an individual is deemed capable, their property is theirs alone to manage, a principle that extends to the relationship between husband and wife.

The Evolution of "Harta Bersama" in Modern Islamic Law

While classical Fiqh may not explicitly name "harta gono-gini," modern Islamic legal systems, particularly in Indonesia, have adapted to address the needs of contemporary families. The Indonesian Marriage Law (Law No. 1 of 1974) and the Compilation of Islamic Law (KHI) have institutionalized the concept under the name Harta Bersama.

Article 35 of the 1974 Marriage Law states that property acquired during marriage becomes joint property, while property acquired before marriage or obtained through inheritance or gifts remains under the control of the respective spouse unless otherwise agreed upon. This legal evolution was a response to the "silent contribution" of wives who manage the household, allowing the husband to work and earn. Indonesian jurists argue that domestic labor has an economic value that entitles the wife to a portion of the assets accumulated during the marriage, even if she did not provide a direct cash injection.

From an Islamic perspective, modern scholars often justify this through the concept of Syirkah (partnership). If a husband and wife agree—either explicitly or implicitly—to pool their resources and efforts to build a life together, their arrangement can be viewed as a Syirkah Abdan (partnership of labor) or Syirkah Al-Wujuh. In this context, the "harta gono-gini" is not seen as a violation of Sharia, but rather as a voluntary contractual agreement between two consenting adults to share their worldly possessions.

Legal Implications and Dispute Resolution

The tension between the "separation of assets" (classical Fiqh) and "joint property" (modern civil law) often comes to a head in the Religious Courts (Pengadilan Agama). When a couple divorces, the court must decide how to divide the wealth. In Indonesia, the default rule under the KHI is that joint property is divided equally (50/50) between the husband and wife upon divorce, regardless of who earned more.

However, if a spouse can prove that certain assets were acquired through inheritance or were owned prior to the marriage, those assets are excluded from the "gono-gini" pool. This creates a rigorous evidentiary requirement. For example, if a husband buys a house using money he inherited from his parents, but the house was purchased during the marriage, he must provide a paper trail to ensure the property is not classified as Harta Bersama.

The division of these assets also becomes critical in the event of death. Under Islamic inheritance law (Farā’iḍ), only the deceased’s actual property can be distributed among the heirs. Therefore, if a husband dies, the court must first determine which portion of the estate is "harta gono-gini." Usually, 50% is set aside for the surviving wife as her share of the joint property, and only the remaining 50% is treated as the husband’s estate to be divided among his heirs (which includes the wife, children, and parents).

Expert Analysis: Balancing Tradition and Equity

The debate over "harta gono-gini" reflects a broader struggle within Islamic thought: how to maintain the integrity of divine law while addressing the shifting socio-economic roles of men and women. Critics of the joint property concept argue that it can lead to injustice if one spouse was significantly more productive or if the other was negligent. They suggest that the strict separation of assets is more "fair" because it rewards individual effort.

Conversely, proponents of the joint property model argue that the classical "separation" model often disadvantages women in the modern world. In many cases, a wife may sacrifice her career to raise children and manage the home, enabling the husband to accumulate significant wealth. If the marriage ends and the court applies a strict separation of assets, the wife could be left with nothing despite her years of labor. By framing the marriage as a partnership (Syirkah), modern Islamic law provides a mechanism to recognize the economic value of domestic contribution.

Ustaz Muhammad Idris notes that while the Quran emphasizes individual ownership, it also emphasizes Ma’ruf (kindness and fairness) in treatment. Denying a spouse a share of the wealth they helped build—even if indirectly—could be seen as a violation of the spirit of justice that permeates Islamic law.

Conclusion and Future Outlook

As the global Muslim community continues to navigate the complexities of the 21st century, the discourse surrounding "harta gono-gini" is likely to become more refined. The current trend suggests a move toward "Marriage Agreements" or prenuptial contracts, which are fully recognized in both Sharia and civil law. These agreements allow couples to define their own terms regarding property ownership, effectively bridging the gap between classical Fiqh and modern legal expectations.

In summary, while "harta gono-gini" is not a term found in the texts of the early Imams, its application in modern Muslim-majority states represents a sophisticated attempt to apply the Islamic principles of justice and partnership to the contemporary family unit. By recognizing the contributions of both spouses, modern legal frameworks aim to ensure that the dissolution of a marriage—whether by death or divorce—does not result in the financial ruin of either party, thereby upholding the Islamic ideal of protecting the vulnerable and maintaining social equity.

July 18, 2026 0 comment