<![CDATA[Law Number 16 of 2025 inserted the phrase “before reserves are established” into Article 3H paragraph (2) of Indonesia’s State-Owned Enterprises Law. This article examines the resulting legal-certainty problems and reconstructs an accountable framework for Danantara’s investment risk reserves. It uses normative-prescriptive legal research with statutory, conceptual, historical, case, and limited functional-comparative approaches. The analysis identifies a reserve-labelling problem: mandatory reserves, investment risk allocations, retained earnings, accounting provisions, and capital accumulation have different functions but insufficiently specified relationships. Comparison with the Santiago Principles and Norway’s Government Pension Fund Global informs the allocation of decision-making, risk-review, and reporting responsibilities, without treating their institutions as equivalent. The proposed Articles 37A–37E establish risk-based allocations, reasoned resolution of supervisory disagreements, time-bound release and corrective measures, and a profit-allocation waterfall consistent with accounting standards. Scenario-based legal testing distinguishes ordinary investment losses, governance breaches, and conduct potentially constituting corruption. The reconstruction links documented decision-making to Article 3Y without creating immunity or treating released equity reserves as newly earned profit.]]>
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