Indonesia is gearing up for the launch of a groundbreaking investment body, the Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara), which is set to be unveiled on February 24, 2025. This new entity, spearheaded by President Prabowo Subianto, will manage over USD 900 billion (approximately IDR 14.7 trillion) in assets owned by the government.

In his recent political speech, Prabowo revealed that Danantara’s primary focus will be on sustainable projects with significant economic impacts, such as energy transition investments, advanced manufacturing, and strengthening the domestic food sector. The goal of these initiatives aligns with Indonesia’s broader target of achieving 8% economic growth.

Additionally, Danantara is expected to play a pivotal role in Indonesia's $3 million house program, contributing liquidity and market interest to this ambitious housing project. While the specifics of the investment strategy remain under wraps, the establishment of Danantara is part of the broader governmental push to enhance the efficiency of state-owned enterprises (SOEs), following the enactment of the revised BUMN law on February 4, 2025.

Erick Thohir, Indonesia’s Minister of State-Owned Enterprises, clarified that Danantara would not only manage BUMN assets but also work to optimize dividends from these enterprises to help fund national projects. The fund is expected to start with IDR 1,000 trillion in capital, based on the consolidated assets of Indonesian SOEs.

Looking ahead, the Indonesian government is preparing regulations to guide the operations of Danantara. These regulations will likely establish a framework for the investment body’s role in both managing and enhancing state-owned assets. Danantara is often compared to Singapore’s Temasek Holdings, indicating the ambitious nature of the project.

SOURCE: BLOOMBERGTECHNOZ

PHOTO: BISNIS/EUSEBIO CHRYSNAMURTY

This article was created with AI assistance.