Indonesia is preparing to launch its latest sovereign wealth fund (SWF), Badan Pengelola Investasi (BPI) Daya Anagata Nusantara (Danantara), on February 24, 2025. The fund will focus on renewable energy, advanced manufacturing, downstream industries, and food production.

President Prabowo Subianto announced Danantara’s establishment during the World Governments Summit 2025 in Dubai, stating that it will manage over $900 billion in assets. "We are preparing to launch Danantara Indonesia, our latest sovereign wealth fund, which, based on our initial evaluation, will oversee more than $900 billion in assets under management (AUM)," Prabowo said during a virtual session on February 13.

Strategic Investment Priorities

Danantara aims to allocate national assets into high-impact, sustainable projects. A key focus will be accelerating Indonesia’s energy transition through investments in the renewable energy sector. Additionally, the fund will support advanced manufacturing and downstream industries, aligning with the government’s industrialization push.

In the agriculture sector, Danantara’s investments are expected to strengthen national food security and enhance the value of local agricultural and livestock products.

“We plan to initiate around 15 to 20 multi-billion-dollar projects, creating significant value for our country,” Prabowo added.

Initial Funding and Economic Impact

In its first phase, Danantara is projected to have an initial capital of $20 billion (approximately IDR 320 trillion). Prabowo expressed confidence that this funding will transform Indonesia’s economic landscape.

"I am highly confident and optimistic. Indonesia will move forward at full speed," he stated.

Minister of State Secretariat Prasetyo Hadi previously hinted at the fund's launch, saying, “God willing, let’s hope for the best,” during a parliamentary meeting on February 1.

The legal foundation for Danantara was established after Indonesia’s House of Representatives (DPR) approved amendments to the State-Owned Enterprises Law (UU BUMN). The revised regulation provides a specific framework for Danantara’s role as a sovereign wealth fund, supporting Indonesia’s economic growth strategy.

With its official launch approaching, Danantara is expected to play a crucial role in boosting Indonesia’s economy and achieving the government’s 8% growth target.

SOURCE: KONTAN | PHOTO: ANTARA

This article was created with AI assistance.