Indonesia Launches Sovereign Wealth Fund to Manage State-Owned Assets
JAKARTA, Feb 24 (Bernama) — Indonesian President Prabowo Subianto has officially launched Daya Anagata Nusantara (Danantara), a sovereign wealth fund aimed at managing state-owned assets worth US$900 billion, starting with an initial capital of US$20 billion.
Objectives of Danantara
The capital will be focused on over 20 projects, including nickel, bauxite and copper downstream processing, the development of artificial intelligence data centres, oil refineries, petrochemical plants, food and protein production, aquaculture, and renewable energy. "Danantara will be a catalyst for progress, linking investments with key projects, accelerating economic development, and fostering national prosperity through transparent and accountable governance," said Prabowo at the launch, which is being broadcast live from the Merdeka Palace on Monday.
Management of State-Owned Enterprises
Danantara will manage seven major state-owned enterprises, including Perusahaan Listrik Negara, Pertamina, and PT Mineral Industri Indonesia in energy and industry; Telkom Indonesia in telecommunications; and Bank Mandiri, Bank Negara Indonesia and Bank Rakyat Indonesia in banking and finance. Operating under direct presidential coordination, Danantara is tasked with elevating Indonesian companies to the Fortune 500, with a long-term goal of contributing to Golden Indonesia 2045, the country’s vision for economic prominence.
Government’s Commitment to Financial Discipline and Governance
Earlier, Prabowo said his government had proven its commitment to managing the nation’s wealth with rigorous financial discipline and responsible governance during its first 100 days in office. "We have successfully secured over 300 trillion rupiah, nearly US$20 billion, in national savings – funds that were once held back by inefficiency, corruption and misdirected spending," he said.
Conclusion
The launch of Danantara marks a significant step towards Indonesia’s economic development and growth. With its vast resources and strategic planning, the country is poised to become a major player in the global economy. The success of Danantara will depend on the government’s commitment to transparency, accountability, and responsible governance.
Frequently Asked Questions
Q: What is Danantara?
A: Danantara is a sovereign wealth fund launched by the Indonesian government to manage state-owned assets worth US$900 billion.
Q: What is the initial capital of Danantara?
A: The initial capital of Danantara is US$20 billion.
Q: What are the objectives of Danantara?
A: The objectives of Danantara include managing over 20 projects, including nickel, bauxite and copper downstream processing, the development of artificial intelligence data centres, oil refineries, petrochemical plants, food and protein production, aquaculture, and renewable energy.
Q: How will Danantara manage state-owned enterprises?
A: Danantara will manage seven major state-owned enterprises, including Perusahaan Listrik Negara, Pertamina, and PT Mineral Industri Indonesia in energy and industry; Telkom Indonesia in telecommunications; and Bank Mandiri, Bank Negara Indonesia and Bank Rakyat Indonesia in banking and finance.