Jakarta, June 12 -- Danantara Indonesia's framework is explicitly engineered to avoid a repeat of Malaysia's infamous 1MDB financial scandal by separating corporate and investment risks, according to Chief Operating Officer Dony Oskaria.

Speaking in Jakarta on Thursday, Dony addressed public anxieties regarding the concentration of massive state wealth, clarifying that Danantara isolates state-owned enterprise (SOE) operational assets from high-risk investment ventures.

"Danantara's institutional structure is designed differently from investment management schemes like 1 Malaysia Development Berhad (1MDB)," Dony said in an official statement.

He acknowledged that public concerns comparing Danantara to 1MDB arose due to the consolidatio...