Danantara: Indonesia’s New Sovereign Wealth Fund.
Indonesia has launched Danantara, a sovereign wealth fund designed to optimize the management of state-owned enterprises (SOEs), attract foreign capital, and drive national economic growth. With an initial capital of at least 1,000 trillion rupiah (US$61 billion), Danantara is positioned to be one of the largest financial instruments in Southeast Asia.
Although not Indonesia’s first sovereign wealth fund, Danantara marks a strategic shift in how the country manages state assets and long-term investments. It builds upon the foundation of the Indonesia Investment Authority (INA), established in 2021 under President Joko Widodo, which currently manages US$10.5 billion in capital. However, the creation of Danantara aligns with President Prabowo Subianto’s more ambitious economic agenda, which seeks to achieve 8 percent annual GDP growth during his five-year term.
To support this vision, Danantara aims to expand its asset base significantly, to manage $982 billion by 2029. If successful, this would make Danantara the fourth-largest sovereign wealth fund in the world, putting it on par with investment giants like Norway’s Government Pension Fund Global and Abu Dhabi Investment Authority.
Source: ASEANBRIEFING
