Danantara to Invest $20 Billion in Indonesian Projects

In a significant development for Indonesia, President Prabowo Subianto announced the launch of the Daya Anagata Nusantara Indonesia fund (Danantara), the country's second sovereign wealth fund. Unveiled at a grand ceremony, Danantara is geared to manage an impressive $900 billion in assets and aims to bolster growth in Southeast Asia's largest economy from 5% to an ambitious 8%. The fund, which will operate independently from the Indonesia Investment Authority, plans an initial $20 billion investment spread across over 20 projects in sectors like metal processing, artificial intelligence, renewables, and food production. This move positions Danantara as a pivotal institution in Indonesia's economic landscape, akin to Singapore's Temasek Holdings. Despite facing resistance from students concerned about potential mismanagement, Prabowo assured robust transparency, allowing public audits. With an organizational structure featuring a main holding entity and a dedicated investment arm, Danantara is set to revitalize state-owned enterprises by channeling dividends into long-term growth industries, with high-profile state companies such as Bank Mandiri and Pertamina among those being managed. Additionally, Rosan Roeslani will lead as CEO, backed by Pandu Sjahrir overseeing its investment operations. In contrast, the Indonesia Investment Authority maintains its distinct operational status, managing $10.5 billion in assets with international co-investors.