Analysis: Prabowo's KSSK Plus: Coordination or quiet control?
President Prabowo Subianto is once again reshaping Indonesia's economic institutions. This time, he has instructed the Financial System Stability Committee (KSSK) to involve the Danantara sovereign wealth fund in its deliberations, creating what Danantara CEO Rosan Roeslani calls "KSSK Plus." But when a state investor joins discussions where its own risks may be assessed, the question is whether…
Prabowo Subianto has reintroduced the Danantara sovereign wealth fund into Indonesia's economic decision-making framework, restructuring the Financial System Stability Committee (KSSK) into a "KSSK Plus" arrangement. While Danantara's involvement aims to provide regulators with direct insights into large-scale business operations, concerns have arisen about whether this arrangement strengthens policy coordination or undermines institutional independence.
Finance Minister and KSSK Chair Purbaya Yudhi Sadewa clarified several points regarding the new format. He emphasized that Danantara would serve as an invitee without voting rights, and decision-making authority would remain with the Finance Ministry, Bank Indonesia, the Financial Services Authority, and the Deposit Insurance Corporation.
The 2023 Financial Sector Development and Strengthening (P2SK) Law allows for such external consultations, but the legal framework stipulates that these parties must remain outside the formal membership of the KSSK.
Danantara's involvement raises conflicts of interest due to its direct stake in the portfolio's value. While it can provide regulators with valuable insights, its presence could potentially weaken market confidence. The timing of this change in the KSSK's composition is particularly precarious, as every institution represented has recently undergone leadership transitions, further complicating the dynamic of economic governance in Indonesia.
Written by urgent.news from The Jakarta Post Academia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
