Indonesia launched a new sovereign wealth fund on Monday that will aim to manage state assets worth more than $900 billion as President Prabowo Subianto hopes to seek turbines in Southeast Asia's largest economy Supercharged growth.
The recently inaugurated leader has pledged to boost annual growth of the archipelago from 5% to 8%, ordering billion-dollar government cuts last week, sparking the first protests over his rule.
Prabowo signed a document at the Presidential Palace in Jakarta to launch a new fund called Daya Anagata Nusantara or Danantara, modeled after Singapore's investment arm Temasek and this month as president The ruling coalition-led parliament was approved.
He said at the palace: “As President of the Republic of Indonesia, I signed…Governmental Decree…On the Organization and Governance of Investment Management Institutions, Daya Anagata Nusantara.”
“This is not only an investment institution, but a tool for national development, which will optimize the way we manage our wealth. We are committed to becoming a developed country.”
Danantara will control the government's stake in the state company, with an initial budget of $20 billion, according to state news agency Antara.
After the signing, investment minister Rosan Roeslani was elected as fund CEO Airlangga Hartarto told reporters.
The government has not specified which state-owned companies will belong to the fund, but Prabowo said he hopes it manages more than $900 billion in assets.
As of 2023, government data showed that the value of state-owned enterprise assets was US$637.5 billion, far below Prabowo’s target.
He will use the fund as an investment vehicle and said he will “invest in 20 or more high-impact national projects this year.”
Prabowo said the initial funding will be used for nickel, bauxite, copper, food production, renewable energy, and projects to build AI centers, refineries and petrochemical plants.
– “New Era” –
Danantara will be Indonesia's second sovereign wealth fund, second only to the Indonesian Investment Agency, which was launched in 2021, and holds US$10.5 billion in assets.
“This event marks a new era of transformation in the country's strategic investment management,” Presidential Secretariat spokesman Yusuf Permana said in a statement on Sunday.
“This is also part of the commitment the government is committed to achieving…a grand vision to bring Indonesia’s economy to a higher level through sustainable and inclusive investment.”
