February 28, 2025
JAKARTA – Growing public distrust of the newly formed sovereign wealth fund, Daya Anagata Nusantara (Danantara), has sparked online discussions on switching banks and cash withdrawals, leading analysts to debate the actual risks of a potential bank run or the ensuing economic crisis.
Public opinion has split on Danantara, which aims to consolidate major state-owned enterprises (SOEs) including those in the banking sector, at a time when state budget cuts have raised concerns that taxpayers’ money was not being put to good use.
Fajar Adi, a university student in Jakarta, expressed his concerns over Danantara with The Jakarta Post on Thursday. The investment management firm projected to manage up to US$900 billion in assets without much transparency, he suggested, was a big gamble.
“If it succeeds, the profits will be big. But if it fails, the losses will also be huge. I worry that if it collapses, millions of customers, including myself, could lose our money in state-owned banks,” he said.
Launched earlier this week by President Prabowo Subianto with $20 billion in initial capital, Danantara is envisioned to be a driving force that will boost the country’s economic growth. The fund is set to focus on a wide range of strategic sectors, from the downstream nickel, oil refineries, petrochemicals, and renewable energy.
But the public remained skeptical of its success given the country’s long history of mismanagement within its SOEs. Some even expressed concern that Danantara could turn out like Malaysia’s 1MDB fund embroiled in a massive corruption scandal.
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Using his X account with the handle name @PetrolWeeb , Fajar posted on Feb. 17: “What if we withdrew all our money from state-owned banks? That would be funny.” Initially meant as a joke, the post has garnered over 1 million views and 26,000 likes as of Thursday. It also draws mixed reactions from social media users.
“Most people responded positively, with some planning to or have already moved their funds to private banks. Others even suggested a number of recommended private banks. But some accused me of being reckless, saying my post could trigger a bank run,” Fajar said, admitting that he had to set his account private for a while due to the accusations.
The 21-year-old, however, argued he lacked the influence to cause the phenomenon. “That could only happen if someone powerful, like a wealthy businessperson, withdrew their money,” he said.
Beyond concerns over potential failure, he questioned Danantara’s leadership, including its chief investment officer, Pandu Patria Sjahrir, the nephew of former senior minister Luhut Binsar Pandjaitan who is also the chairman of the National Economic Council.
“They could have vested interests that benefit certain parties while harming the public”.
By far, Fajar has limited his use of state-owned banks for tuition fee payment only. He also plans to open a private bank account soon.
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Similarly, a 29-year-old worker in Jakarta who asked to be called by his pen name, Sufi Si Jawara, told the Post on Wednesday that he now only uses his state-owned bank account when necessary, keeping most of his money in a private bank.
“There is no guarantee Danantara will be free from corruption, collusion and nepotism, nor clarity on accountability,” he said, citing how Danantara is not subject to oversight by the Supreme Audit Agency (BPK) and the Corruption Eradication Commission (KPK).
“If something goes wrong, is there any guarantee that customers in state-owned banks will be protected?” he asked. “The impact would be felt by the public and could escalate further.”
They are only two of many social media users sharing their plan to switch from state-owned banks to private lenders. Some even turned to the internet to look for information on banks and their ties to Danantara.
Abdul Manap Pulungan from the Institute for Development of Economics and Finance (Indef) warned against escalating calls to switch banks.
“If large-scale withdrawals lead to a bank run, a banking crisis will occur, with severe and uncontrollable economic consequences,” Abdul said.
“It would not only affect state-owned banks but also private banks, non-bank financial institutions and the capital market, as banks are the core of the national payment system,” he continued.
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Mochammad Doddy Ariefianto, an economist at Bina Nusantara (Binus) University, echoed the concern but offered a different perspective.
“I doubt [a bank run] will actually happen because the economy is currently stable, unlike during the financial crises of 1998 or 2008. I also don’t think people will follow [the rallying calls] because they are baseless,” he said.
Under the new SOEs Law passed on Feb. 4, the BPK and KPK can only audit companies upon request from the House of Representatives, while Danantara’s supervision will be led by current SOEs Minister Erick Thohir, who serves as chairman of the supervisory board and reserves the authority to temporarily dismiss members of Danantara’s executive body.
The Financial Services Authority (OJK), the banking regulatory body, reaffirmed its commitment to overseeing state-owned banks to ensure proper governance, prudence, and risk management practices to maintain financial stability.
OJK’s chief executive of banking supervision, Dian Ediana Rae, stated in a press release on Monday that “Danantara’s establishment does not compromise banking operations, services, or deposit security.”
Indonesia Deposit Insurance Corporation (LPS) chairman Purbaya Yudhi Sadewa also assured that public deposits in state-owned banks remain safe and professionally managed, urging the public not to worry, Antara reported.