Indonesian President Prabowo Subianto unveiled the country’s new sovereign wealth fund, Danantara Indonesia, Reuters reported.
Prabowo announced an initial investment of 20 billion in various range of projects spanning metal artificial intelligence, renewable energy, and food production.
The fund, formally named Daya Anagata Nusantara Indonesia, is expected to manage over 900 billion in assets, aiming to accelerate development in Southeast Asia’s largest economy and fulfil Prabowo’s ambitious goal of boosting GDP growth to 8%, up from the current rate of around 5%.
The launch ceremony, attended by hundreds of foreign dignitaries, business leaders, and politicians, marked a significant step in Indonesia’s efforts to optimise state-owned enterprises (SOEs) and attract investment into key sectors. Danantara Indonesia will operate separately from the existing Indonesia Investment Authority (INA) and will function similarly to Singapore’s Temasek Holdings.
Prabowo emphasised that Danantara Indonesia represents a “strategic and efficient solution” to enhance the performance of state-owned enterprises.
Not only are we going to invest state companies’ dividend payments into industries that support long-term growth, but we will also transform our state companies to become world leaders in their respective sectors.
The fund’s initial $20 billion investment will target more than 20 projects, including nickel, bauxite, and copper processing, artificial intelligence development, oil refineries, renewable energy, and food production. The sectors align with Indonesia’s broader economic goals, including reducing reliance on raw material exports and moving up the value chain in industries such as mining and technology.
Transparency and governance
Addressing concerns about potential mismanagement, Prabowo pledged full transparency in the fund’s operations. The fund will be structured into two units: a holding company overseeing state enterprises and an investment arm focused on strategic projects.
Danantara could be audited any time by anyone because it is owned by the people.
Investment Minister Rosan Roeslani, a seasoned businessman and former head of Indonesian investment firm Recapital Group, will serve as Danantara’s chief executive. Meanwhile, Pandu Sjahrir, managing partner at asset management firm Indies Capital and founding partner of venture fund AC Ventures, has been appointed to lead the investment arm.
Rosan confirmed that Danantara will operate independently from the INA, which currently manages $10.5 billion in assets, including co-investments from international partners such as Dutch pension fund APG Asset Management and Abu Dhabi Investment Authority. While INA focuses on attracting foreign investment, Danantara will concentrate on optimising state-owned enterprises and driving domestic growth.
Danantara will also oversee some of Indonesia’s most prominent state-owned companies, including leading lenders Bank Mandiri, Bank Rakyat Indonesia, and Bank Negara Indonesia, as well as state energy firm Pertamina, utility company Perusahaan Listrik Negara, and telecommunications giant Telkom Indonesia.
The launch of Danantara Indonesia marks a pivotal moment in Indonesia’s economic strategy, reflecting the government’s commitment to leveraging state assets for long-term growth.
