IndonesianTalk.com — Sundanese elder Burhanuddin Abdullah pushes Sanggabuana as West Java’s answer to Danantara
Former Bank Indonesia governor Burhanuddin Abdullah has thrown his weight behind the establishment of Sanggabuana, a planned holding company that would consolidate 37 region-owned enterprises (BUMDs) in West Java, saying professionalism and sound corporate governance would be critical to turning the ambitious initiative into a new economic engine for the province.
“He serves as a pinisepuh, or senior elder, of the Sundanese community within the Majelis Musyawarah Sunda [MMS],” Ismeth, a member of the MMS Council of Experts, said when introducing Burhanuddin on the sidelines of the Pasamoan Inohong Sunda gathering at the University of Indonesia’s Faculty of Medicine in Salemba, Central Jakarta, on Saturday.
Burhanuddin, who currently serves as president commissioner of state electricity company PLN, is one of the senior figures within the MMS and has taken an interest in strategic initiatives aimed at strengthening West Java’s economy.
Among them is Sanggabuana, a proposed provincial holding company modeled in part on the central government’s Danantara investment management initiative.
The plan has prompted some proponents to describe Sanggabuana as “West Java’s Danantara”, although Burhanuddin stressed that the provincial entity would remain institutionally independent from its national counterpart.
The gathering brought together prominent Sundanese figures as well as senior government officials, retired military and police generals, academics and executives of state- and region-owned enterprises.
Those attending included former coordinating political and security affairs minister retired Army general Agum Gumelar; former deputy National Police chief and House of Representatives Commission III member retired police commissioner general Adang Daradjatun; former Navy chief retired admiral Ade Supandi; and former Corruption Eradication Commission (KPK) chairman retired police commissioner general Taufiequrachman Ruki.
Also present were Deputy Home Minister Akhmad Wiyagus, Pertamina president commissioner Mochamad Iriawan, former national development planning minister and Bappenas chief Paskah Suzetta, West Java provincial secretary Herman Suryatman and University of Indonesia rector Heri Hermansyah.
Other Sundanese public figures and community leaders attending the gathering included Ganjar Kurnia, Zainudin, Halimah Munawir, Dindin S. Maolani, Nu’man Abdul Hakim, Ikik Lukman Soemadisoeria, Ernawan Koesoemaatmadja, Didin Damanhuri, Agus Pakpahan, Ayi Hambali, Rachmat Hidayat Djati, Andri Kantaprawira and Nina Kurnia Hikmawati.
Consolidating 37 West Java enterprises
Sanggabuana is envisioned as an umbrella holding company for 37 BUMDs controlled by the West Java administration.
While drawing inspiration from Danantara at the national level, the entity would operate independently and focus specifically on improving the management of provincial assets and businesses.
Burhanuddin said the success of the holding company would ultimately depend on the quality of the people appointed to run it.
“I have made it very clear to the governor, Pak KDM, that the people running it must be truly professional. If they are not professionals, I told him I would step aside,” Burhanuddin said, referring to West Java Governor Dedi Mulyadi by his popular initials.
He warned that Sanggabuana should not simply create another layer of bureaucracy above existing provincial enterprises.
Instead, consolidating the 37 BUMDs should lead to substantive improvements in corporate governance, human resources, capitalization and overall business performance.
“West Java has 37 BUMDs. We will bring them together and coordinate them. If necessary, we can strengthen their capital. The provincial administration could inject additional capital, while we also improve the quality of the people managing them,” Burhanuddin said.
From Danantara to Sanggabuana
The holding company concept has been under preparation for nearly a year, according to Burhanuddin.
He said Sanggabuana was essentially ready to be launched once the necessary regulatory process involving the West Java administration and the provincial legislative council was completed.
“Hopefully, once the West Java administration and the DPRD can complete the regional regulation and other requirements, we are actually ready for the launch,” he said.
The proposed holding was initially expected to be called Danantiri, but Dedi later opted for Sanggabuana, a name with a stronger West Java identity.
“We initially wanted to call it Danantara, but the governor wanted Sanggabuana. That’s fine. Sanggabuana is actually better,” Burhanuddin said.
Despite comparisons with Danantara, he stressed that there would be no organizational relationship between the two entities.
“There is no coordination with Danantara at the central level,” he said.
However, Burhanuddin said the national investment body could eventually invest alongside Sanggabuana if the West Java holding developed commercially attractive projects.
“If Sanggabuana later has highly profitable projects, Danantara can chip in. Danantara can invest in West Java,” he said.
Home Ministry gives green light
West Java provincial secretary Herman Suryatman said the Home Ministry had approved the proposal and issued its recommendation for the establishment of Sanggabuana.
“The Home Ministry has approved it and issued its recommendation. The ball is now back in our court,” Herman said.
The provincial administration will now move forward with the legislative process.
According to Herman, Dedi is scheduled to submit introductory notes on two draft regional regulations to the West Java Legislative Council on Aug. 14.
One draft regulation will provide the legal basis for establishing Sanggabuana as a BUMD holding company, while the other will regulate the necessary capital participation.
The provincial administration expects the two bylaws to be completed before the end of the year. Once the legal framework is in place, attention will shift toward establishing the organization and recruiting its management team.
Sanggabuana will then coordinate 37 BUMDs with widely varying financial and operational conditions. Some are considered healthy businesses, while others require restructuring and improvement.
“This will be the first of its kind in Indonesia, and Sanggabuana is inspired by Danantara — by the idea of how a holding company can optimize the performance of existing BUMDs,” Herman said.
Professionalism ‘non-negotiable’
Burhanuddin said he believed holding-company models such as Danantara and Sanggabuana had considerable potential, citing lessons from the management of state assets and enterprises in other countries.
He said he had previously been asked by the President to study comparable models in China, Singapore, Malaysia, Middle Eastern countries and elsewhere.
“I was asked by the President to study this in various countries — China, the Middle East, Singapore, Malaysia and others. We prepared the draft while trying to make it as professional as possible,” Burhanuddin said.
He cautioned, however, that establishing a large holding company would not automatically generate immediate profits.
Restructuring businesses, improving corporate culture and human resources, strengthening capital and modernizing technology would all require a transition period, he said.
Such changes should also follow a clear sequence rather than being rushed in pursuit of immediate results.
“Change requires a transition period, and there needs to be a clear sequence. Sometimes we want things to happen too quickly and end up skipping parts of that sequence,” Burhanuddin said.
For that reason, he said, professional management would be non-negotiable.
Rather than serving merely as an administrative umbrella for dozens of provincial companies, Sanggabuana is expected to transform West Java’s assets into productive economic resources capable of generating stronger returns and contributing more significantly to regional development.
Consolidating 37 enterprises under a professionally managed holding company could also create economies of scale that are difficult to achieve when individual BUMDs operate largely on their own.
Burhanuddin expressed optimism that Sanggabuana could eventually emerge as a strategic player in West Java’s economic development while opening opportunities for cooperation with major national investors.
“One day, Danantara and Sanggabuana will play a very important role in our development,” Burhanuddin said.
