bodyType

customContents

entityId

printArticlePageQuery

filter

article

body

urlAlias

articleSectionsContent

articleSeoArticle

articleSourceHeaderArticle

contentSchemaRenderContent

contentSubHeadlineContent

contentHeadlineContent

mainImagePrintArticleArticle

authorBlockPrintArticleArticle

contentSponsorTagContent

articlePianoPaywallContent

scmpYoutubeContent

hooksTrackPageViewArticle

query printArticlePageQuery(
  $entityId: String!
  $customContents: [CustomContentInput]
  $bodyType: BodyFormatTypeEnum
) {
  article(filter: {entityId: $entityId}) {
    entityId
    body(customContents: $customContents, type: $bodyType) {
      json
    }
    urlAlias
    ...articleSectionsContent
    ...articleSeoArticle_3o8td4
    ...articleSourceHeaderArticle
    ...contentSchemaRenderContent
    ...contentSubHeadlineContent
    ...contentHeadlineContent
    ...mainImagePrintArticleArticle
    ...authorBlockPrintArticleArticle
    ...contentSponsorTagContent
    ...articlePianoPaywallContent
    ...scmpYoutubeContent
    ...hooksTrackPageViewArticle
    id
  }
}

fragment articlePianoPaywallContent on Content {
  __isContent: __typename
  ...hooksPaywallPromiseContent
}

fragment articleSectionsContent on Content {
  __isContent: __typename
  sectionsV2 {
    value {
      __typename
      ... on Section {
        name
        published
      }
      ... on VideoSection {
        name
        published
      }
      ...helpersCheckIfNewsSectionInFirstIndexSection
      ...entityLink
      ... on Node {
        __isNode: __typename
        id
      }
    }
  }
}

fragment articleSeoArticle_3o8td4 on Article {
  ...hooksArticleSeoArticle
  ...helpersGetArticleTypeArticle
  entityId
  publishedDate
  updatedDate
  summary {
    text
  }
  subHeadline {
    text
  }
  body(customContents: $customContents, type: $bodyType) {
    text
  }
  keywords
  sectionsV2 {
    value {
      __typename
      ... on Section {
        name
      }
      ... on Node {
        __isNode: __typename
        id
      }
    }
  }
  topics {
    name
    entityId
    id
  }
  urlAlias
  authors {
    name
    id
  }
  images {
    style(filter: {style: "768x768"}) {
      url
    }
  }
  readingTime
}

fragment articleSourceHeaderArticle on Article {
  urlAlias
  ...entityLink
}

fragment authorBlockPrintArticleArticle on Article {
  ...defaultArticleDateContent
  ...authorNamesArticle
}

fragment authorNameAuthor on Author {
  ...entityLink
  name
  entityUuid
}

fragment authorNamesArticle on Article {
  authorLocations
  authors {
    entityId
    location
    ...authorNameAuthor
    id
  }
}

fragment blockquoteQuoteContent on Content {
  __isContent: __typename
  ...contentShareWidgetContent
}

fragment checkersCheckContentContainsStarlingImageContent on Content {
  __isContent: __typename
  topics {
    entityId
    id
  }
}

fragment contentHeadlineContent on Content {
  __isContent: __typename
  headline
  socialHeadline
  ...contentHeadlineTagContent
  ...helpersUseContentSponsorContent
}

fragment contentHeadlineTagContent on Content {
  __isContent: __typename
  ...hooksContentHeadlineTagContent
}

fragment contentNewsletterWidgetContent on Content {
  __isContent: __typename
  topics {
    relatedNewsletters {
      ...helpersMassageToNewsletterItemNewsletter
      id
    }
    id
  }
  sectionsV2 {
    value {
      __typename
      ... on Section {
        relatedNewsletters {
          ...helpersMassageToNewsletterItemNewsletter
          id
        }
      }
      ... on Node {
        __isNode: __typename
        id
      }
    }
  }
  ... on Article {
    relatedNewsletters {
      ...helpersMassageToNewsletterItemNewsletter
      id
    }
  }
}

fragment contentSchemaRenderContent on Content {
  __isContent: __typename
  ...blockquoteQuoteContent
  ...hooksInlinePlusWidgetContent
  ...imageContent
  ...inlineWidgetContent
  ...photoGalleryWidgetContent
  ...scmpYoutubeContent
}

fragment contentShareWidgetContent on Content {
  __isContent: __typename
  __typename
  entityId
  urlAlias
  shortUrl
  socialHeadline
  headline
  ... on Video {
    youtubeId
  }
}

fragment contentSponsorTagContent on Content {
  __isContent: __typename
  ...helpersUseContentSponsorContent
}

fragment contentSubHeadlineContent on Content {
  __isContent: __typename
  subHeadline {
    json
  }
  summary {
    json
  }
  ...contentSchemaRenderContent
}

fragment defaultArticleDateContent on Content {
  __isContent: __typename
  ...hooksArticleDateUtilsContent
}

fragment entityLink on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  __typename
  entityId
  entityUuid
  urlAlias
  urlRedirect {
    toUrl
    id
  }
  application {
    entityId
    id
  }
  ... on Section {
    fullSectionPath {
      entityId
      id
    }
    parentSection
  }
  ...helpersAppBarVariantBase
  ...helpersApplicationBase
  ...helpersCheckIsPlusArticle
  ...helpersStyleSectionContent
}

fragment helpersAppBarVariantBase on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  ...helpersCheckIsLiveArticle
  ...helpersCheckIsPlusPage
  ...helpersCheckIsPostMagazineArticle
  ...helpersCheckIsStyleArticle
  ...helpersSectionContent
  ...helpersStyleSectionContent
}

fragment helpersApplicationBase on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  ...helpersCheckIsPlusPage
}

fragment helpersCheckIfNewsSectionInFirstIndexSection on SectionUnion {
  __isSectionUnion: __typename
  ... on Section {
    name
  }
  ... on VideoSection {
    name
  }
}

fragment helpersCheckIsAmpEnabledArticle on Article {
  entityId
  types {
    value {
      entityId
      id
    }
  }
  sectionsV2 {
    value {
      __typename
      ... on Section {
        entityId
      }
      ... on Node {
        __isNode: __typename
        id
      }
    }
  }
  disableOffPlatformContent
  sponsorType
  published
  ...helpersCheckIsPlusArticle
}

fragment helpersCheckIsLiveArticle on Article {
  flattenTypeIds
  liveArticle {
    status
    id
  }
}

fragment helpersCheckIsMainTopicContent on Content {
  __isContent: __typename
  topics {
    entityId
    id
  }
}

fragment helpersCheckIsPlusArticle on Content {
  __isContent: __typename
  ... on Article {
    paywallTypes {
      entityUuid
      id
    }
  }
}

fragment helpersCheckIsPlusPage on Page {
  urlAlias
}

fragment helpersCheckIsPostMagazineArticle on Content {
  __isContent: __typename
  sectionsV2 {
    value {
      __typename
      ... on Section {
        entityId
      }
      ... on Node {
        __isNode: __typename
        id
      }
    }
  }
}

fragment helpersCheckIsStyleArticle on Content {
  __isContent: __typename
  sectionsV2 {
    value {
      __typename
      ... on Section {
        entityId
      }
      ... on VideoSection {
        entityId
      }
      ... on Node {
        __isNode: __typename
        id
      }
    }
  }
}

fragment helpersGetArticleTypeArticle on Content {
  __isContent: __typename
  ... on Article {
    types {
      value {
        entityId
        id
      }
    }
  }
}

fragment helpersMassageToNewsletterItemNewsletter on Newsletter {
  entityId
  name
  alternativeName
  description {
    text
  }
  summary {
    text
  }
  homepageDescription {
    text
  }
}

fragment helpersSanitizeArticleTypeEntityIdsArticle on Article {
  types {
    value {
      entityId
      id
    }
  }
}

fragment helpersSanitizeAuthorTypesArticle on Article {
  authors {
    types
    id
  }
}

fragment helpersSanitizedAuthorEntityIdsArticle on Article {
  authors {
    entityId
    id
  }
}

fragment helpersSectionContent on Section {
  fullSectionPath {
    entityId
    id
  }
}

fragment helpersStyleSectionContent on Section {
  fullSectionPath {
    entityId
    id
  }
}

fragment helpersUseContentSponsorContent on Content {
  __isContent: __typename
  topics {
    entityId
    sponsor {
      ...sponsorTagSponsor
      name
      type
      id
    }
    id
  }
  ... on Article {
    sponsorType
  }
  ...helpersCheckIsMainTopicContent
}

fragment hooksArticleDateUtilsContent on Content {
  __isContent: __typename
  createdDate
  publishedDate
  updatedDate
}

fragment hooksArticleSeoArticle on Article {
  ...helpersCheckIsPostMagazineArticle
  ...helpersCheckIsStyleArticle
  ...hooksContentHeadlineTagContent
  ...helpersCheckIsAmpEnabledArticle
  entityId
  headline
  socialHeadline
  types {
    value {
      entityId
      id
    }
  }
  authors {
    entityId
    id
  }
  images {
    generic_og: style(filter: {style: "og_image_scmp_generic"}) {
      url
    }
    styles(filter: {styles: ["og_postmag", "og_image_style", "og_image_scmp_analysis", "og_image_scmp_explainer", "og_image_scmp_editorial", "og_image_scmp_fact_check", "og_image_scmp_debate", "og_image_scmp_live", "og_image_scmp_obituary", "og_image_scmp_opinion", "og_image_scmp_review", "og_image_scmp_series", "og_image_scmp_generic"]}) {
      url
      style
    }
    type
  }
  urlAlias
}

fragment hooksContentHeadlineTagContent on Content {
  __isContent: __typename
  __typename
  ... on Article {
    types {
      value {
        name
        entityId
        description {
          text
        }
        id
      }
    }
    ...helpersCheckIsStyleArticle
  }
  flag
  sectionsV2 {
    value {
      __typename
      ... on Section {
        name
      }
      ... on VideoSection {
        name
      }
      ... on Node {
        __isNode: __typename
        id
      }
    }
  }
  ...hooksContentHelperContent
}

fragment hooksContentHelperContent on Content {
  __isContent: __typename
  ...helpersSanitizeArticleTypeEntityIdsArticle
  ...helpersSanitizeAuthorTypesArticle
  ...helpersSanitizedAuthorEntityIdsArticle
  flag
}

fragment hooksInlinePlusWidgetContent on Content {
  __isContent: __typename
  topics {
    entityId
    id
  }
}

fragment hooksPaywallPromiseContent on Content {
  __isContent: __typename
  entityId
}

fragment hooksTrackPageViewArticle on Content {
  __isContent: __typename
  entityId
  publishedDate
  headline
  sectionsV2 {
    value {
      __typename
      ... on Section {
        name
      }
      ... on Node {
        __isNode: __typename
        id
      }
    }
  }
  urlAlias
  authors {
    name
    id
  }
  entityUuid
}

fragment imageContent on Content {
  __isContent: __typename
  headline
  ...checkersCheckContentContainsStarlingImageContent
}

fragment inlineWidgetContent on Content {
  __isContent: __typename
  ...contentNewsletterWidgetContent
}

fragment mainImagePrintArticleArticle on Article {
  images {
    title
    url
    isSlideshow
    size_652x446: style(filter: {style: "652x446"}) {
      url
    }
  }
}

fragment photoGalleryDialogContent on Content {
  __isContent: __typename
  __typename
  ...contentShareWidgetContent
}

fragment photoGalleryWidgetContent on Content {
  __isContent: __typename
  ...photoGalleryDialogContent
}

fragment scmpYoutubeContent on Content {
  __isContent: __typename
  entityId
  urlAlias
  publishedDate
}

fragment sponsorTagSponsor on Sponsor {
  name
  type
  images {
    url
  }
}


types

sectionsV2

disableOffPlatformContent

sponsorType

published

headline

socialHeadline

authors

images

publishedDate

updatedDate

summary

subHeadline

keywords

topics

readingTime

authorLocations

Johannes Nugroho

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.
In addition to being a sovereign wealth fund, Danantara is a super holding entity entrusted to manage all of Indonesia’s State-Owned Enterprises. Compared to Singapore’s Temasek Holdings, and Malaysia’s Khazanah Nasional Berhad, it received initial funding of US$20 billion and aims to achieve a net portfolio worth up to US$900 billion.
A petition filed in the Constitutional Court on March 20 seeks to declare Law No. 1-2025, which established Danantara and was signed by President Prabowo Subianto in February, unconstitutional. The petition argues that the law cuts financial and legal ties between SOEs and the government, potentially undermining public oversight and enabling corruption.

Plaintiff Rega Felix, an Indonesian citizen, claimed it had “radically changed” the definition and nature of SOEs.
Under Indonesia’s constitution, the court can invalidate any laws contradicting the country’s charter. If judges find the legislation unconstitutional, Danantara’s future could be in jeopardy.
Rega cited excerpts from the law in his petition, including one that stated, “The capital and assets of an SOE solely belongs to it and its profits and losses do not constitute profits and losses to the state.”
He argued that by formally severing SOEs from the state, the law created a legal grey area that could shield officials from prosecution under anti-corruption statutes typically applied to public entities, exacerbating the already “rampant corruption” in the sector.
“By making SOEs totally detached from the state, corrupt SOE officials won’t be able to be prosecuted using corruption clauses for mismanagement or embezzlement,” the petition said.
Legal expert and lawyer Muhammad Raihan Nugraha said that since the passage of the 2020 Omnibus Law under then-president Joko Widodo, SOE finances had been separate from state funds.
“However, there were always two possible legal interpretations regarding the issue, since a 2003 law also states that detached assets of the state were still part of the treasury.”
The government drafted the new 2025 law in conjunction with parliament to replace the old 2003 law on SOEs.
“There is also the 2013 ruling by the Constitutional Court, which categorically states that assets belonging to SOEs were part of the treasury.”
Gigih Prihantono, an economist at Surabaya’s Airlangga University, said he believed the new law was meant to provide “legal certainty” for SOE executives, who were often at risk of prosecution for corruption charges.


“Under the old law, our SOEs were constrained in what they could do businesswise, which may have impacted their competitiveness,” he said, citing the corruption charges against PT Antam, an Indonesian SOE that dealt in precious metals.
In 2024, a corruption court ruled against a number of executives at PT Antam for “selling 7 tonnes of gold bullions at undermarket prices” to businessman Budi Said, who was sentenced to 15 years for fraudulent purchases.
“A company in the private sector may at its discretion give out discounts to its customers but in the case of PT Antam, which is an SOE, discounts were seen as financial impropriety causing losses to the state,” Gigih explained.
But he said he understood the public’s suspicion regarding the new law, considering the complex relationship between SOEs and patriotism in Indonesia.
“Historically, most of our SOEs started out as Dutch conglomerate groups dominating our economic landscape for centuries until President Sukarno decided to nationalise them.”
There’s always angst when the government seeks to tamper with the structure of SOEs, even if it makes sense in business practices
Gigih Prihantono, economist
Although Indonesia gained full sovereignty from the Dutch in 1949, its economy was influenced by Dutch multinational companies that had operated since colonial times. Between 1957 and 1959, the Indonesian government nationalised major Dutch and other foreign firms in a push towards economic self-sufficiency.
“So there’s always angst whenever the government seeks to tamper with the structure of SOEs, even if it makes sense in terms of business practices.”
As an economist, however, Gigih said a greater concern was a clause in the new law that gave the president authority to determine which sectors should be placed under state business monopoly.
The Indonesian Constitution requires that essential public services – such as electricity, railways, fuel production and clean water – remain under state control.
“All SOEs used to be answerable to the Ministry of SOEs, but the new superholding Danantara is, under the new law, directly under the president, pushing aside the ministry into an advisory role only.”
He argued that not every sitting president would have the necessary economic expertise to manage complex state businesses.

If the court ruled against detaching SOEs from state finances, Gigih said reform efforts could be derailed.
“It would be a shame if innovation, in the way our SOEs were run, was to be stifled out of fear of trying out new things.”
Asked whether the new law could lead to more corruption within SOEs, he said there would always be loopholes, even in the most stringent system.
In 2024, the Corruption Eradication Commission claimed most cases they handled were connected with SOEs.
Earlier this year, Pertamina, Indonesia’s fuel production and distribution SOE, fell into disrepute when it emerged that its executives had colluded in the tampering of RON 92 petrol, effectively selling an inferior product to the public for years.
Yet, Gigih said we should look at the broader picture.
“Upon further inspection, 80 per cent of the so-called corruption cases at our SOEs turned out to be pure business losses rather than verifiable intent to defraud the state.”
The judicial review of the new law for Danantara is pending a hearing date at Indonesia’s Constitutional Court, where rulings can take nearly a year.


Indonesia’s Danantara fund faces constitutional challenge over corruption concerns

Exterior facade of the building housing Indonesia’s sovereign wealth fund, known as Daya Anagata Nusantara or Danantara, in Jakarta. Photo: AFP

Former Indonesian president Susilo Bambang Yudhoyono (left), Indonesian President Prabowo Subianto (centre) and former Indonesian president Joko Widodo attend the launch of new sovereign wealth fund – Danantara in Jakarta on February 24. Photo: Reuters

Indonesia’s Danantara sovereign wealth fund faces a legal challenge over concerns it may weaken SOE oversight and increase corruption. Photo: Reuters

This Week in Asia

Economics

Politics

News

Asia

Southeast Asia

Critics fear the new law underpinning the fund weakens oversight of state-owned enterprises, potentially fuelling corruption risks


Critics fear the new law underpinning the fund weakens oversight of state-owned enterprises, potentially fuelling corruption risks.


Indonesia’s Danantara fund faces constitutional challenge over corruption concerns

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Critics fear the new law underpinning the fund weakens oversight of state-owned enterprises, potentially fuelling corruption risks

Critics fear the new law underpinning the fund weakens oversight of state-owned enterprises, potentially fuelling corruption risks