itsslab.com – On February 24, 2025, Indonesian President Prabowo Subianto is set to launch the Daya Anagata Nusantara Investment Agency, commonly known as Danantara. This sovereign wealth fund is designed to consolidate and manage assets from major state-owned enterprises (SOEs), with an initial capital of approximately $20 billion.
Danantara aims to oversee assets exceeding $900 billion, positioning it among the world’s largest sovereign wealth funds. The fund’s primary focus will be on investing in sustainable, high-impact projects across various sectors, including renewable energy, advanced manufacturing, downstream industries, and food production. These initiatives align with President Prabowo’s ambitious goal of achieving 8% economic growth by 2029.
The establishment of Danantara follows recent parliamentary approval, which facilitated the consolidation of significant SOEs under the fund’s management. This structure is modeled after Singapore’s investment arm, Temasek, aiming to enhance the efficiency and global competitiveness of Indonesia’s state-owned assets.
However, the creation of Danantara has sparked discussions regarding potential political influence and governance challenges. Critics express concerns that the fund’s extensive control over vital state assets could lead to political interference, potentially undermining its effectiveness and Indonesia’s investment credibility.
In response to these concerns, President Prabowo has emphasized that Danantara will operate with a high degree of transparency and professionalism, adhering to international best practices in sovereign wealth fund management. The government asserts that this initiative is a strategic move to optimize the performance of SOEs, attract foreign investment, and drive national economic transformation.
As the launch date approaches, both domestic and international stakeholders are closely monitoring the development of Danantara, recognizing its potential to significantly influence Indonesia’s economic landscape in the coming years.