Indonesia’s newly unveiled sovereign wealth fund, Danantara, has sparked a constitutional challenge, with the plaintiff arguing the new law establishing the fund has “radically changed” the status of state-owned enterprises (SOEs) in a way that could impede corruption oversight.
Experts said the case revealed deep legal ambiguities over whether SOEs were truly separate from the state. The new law attempts to address this tension, but some argue it may weaken public accountability, raising concerns about transparency.