Indonesia to Launch $900 Billion Sovereign Wealth Fund
Deal News | Feb 13, 2025 | Zawya
Indonesia's President Prabowo Subianto is set to unveil a groundbreaking sovereign wealth fund, Danantara, on February 24, with over $900 billion in assets under management. The fund will aim to fuel the country's economic growth by investing in sustainable, high-impact projects across diverse sectors, including renewable energy and food production. This initiative aligns with the government's ambition to attain an 8% economic growth rate by 2029. Modeled on Singapore's Temasek, Danantara will consolidate government holdings in state enterprises such as prominent banks. The government has also managed to save over $20 billion through efficiency measures to support substantial projects involving critical minerals.
Sectors
- Finance & Investment Management
- Renewable Energy
- Metals & Mining
Geography
- Indonesia – The country of focus, where the sovereign wealth fund will be established and conduct its investments.
- Singapore – The fund Danantara is modeled after Temasek, Singapore's sovereign wealth fund.
Industry
- Finance & Investment Management – The article discusses the creation and objectives of a sovereign wealth fund, which involves the management and investment of public assets.
- Renewable Energy – The fund aims to invest in sustainable projects, including those in the renewable energy sector.
- Metals & Mining – The fund will finance projects concerning critical minerals such as nickel, bauxite, and copper.
Financials
- $900 billion – Assets under management by the new sovereign wealth fund, Danantara.
- $20 billion – Savings achieved by the Indonesian government through efficiency measures, intended for financing multi-billion dollar projects.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Prabowo Subianto | Announcer | People | President of Indonesia, announced the launch of the sovereign wealth fund Danantara. |
| Danantara | Sovereign Wealth Fund | Companies | A new sovereign wealth fund set to manage over $900 billion in assets, modeled after Temasek. |
| Bank Mandiri | State-Owned Bank | Companies | One of the state companies whose holdings will be transferred to Danantara. |
| Bank Rakyat Indonesia | State-Owned Bank | Companies | Another state company whose holdings will be transferred to Danantara. |
| Bank Negara Indonesia | State-Owned Bank | Companies | A third state company involved in the transfer of holdings to Danantara. |
| Indonesian Government | Initiator | Government | The entity behind the launch of the new sovereign wealth fund. |
| Temasek | Model | Companies | Singapore's investment arm, after which Danantara is modeled. |