Indonesia Launches Danantara, Will It Attract More Foreign Investors?.
Indonesia has officially introduced Danantara, a sovereign wealth fund (SWF) designed to reshape the country’s investment landscape. With an initial asset pool of $20 billion, the fund is expected to optimize national wealth through investments in key sectors. The government hopes this initiative will drive Indonesia’s economic growth to 8% while attracting more foreign investors.
On February 24, 2025, President Prabowo Subianto inaugurated Danantara at the Presidential Palace in Jakarta. He emphasized its role beyond just an investment management entity, calling it a vital instrument for national development.
“The launch of Danantara is a significant milestone because this is not merely an investment fund—it must serve as a national development tool that optimizes how we manage Indonesia’s wealth,” Prabowo stated.
He further explained that Danantara is expected to redefine the management of national assets to benefit the people. The president also underscored the government’s commitment to responsible fiscal policies.
Danantara, short for Daya Anagata Nusantara, is a state-owned investment fund modeled after Singapore’s Temasek. It oversees over $900 billion in assets, including major stakes in state-owned enterprises such as Bank Mandiri, Pertamina, and Telkom Indonesia.
President Prabowo revealed that the first wave of investments—amounting to $20 billion—will be allocated to 20 large-scale projects. These projects focus on nickel, bauxite, and copper downstreaming, artificial intelligence data centers, oil refineries, petrochemical plants, food production, aquaculture protein, and renewable energy development.
Source: BIZINDO
