President Prabowo Subianto officially launched Indonesia's sovereign wealth fund, Daya Anagata Nusantara (Danantara), at the Presidential Palace in Jakarta on Monday, February 24, 2025. In front of foreign ambassadors and international guests, Prabowo emphasized Danantara's readiness to collaborate with global businesses and expand Indonesia's economic reach.

"Distinguished guests, ambassadors, national figures, and leaders from all sectors, Danantara Indonesia announces to the world that we are ready to work together," said President Prabowo during the inauguration event.

Switching to English, he conveyed Indonesia's openness to global partnerships, stating, "Indonesia sends a clear message to our friends and partners worldwide—we are open for collaboration, open for business, open for investment, and open to achieving shared prosperity."

Danantara, formed as an investment management body, is expected to help propel Indonesia's economic growth towards an ambitious target of 8%. The institution will manage a staggering $900 billion in assets, approximately Rp14,680 trillion (using an exchange rate of 1 USD = Rp16,310), making it one of the largest sovereign wealth funds globally.

President Prabowo, alongside Indonesia's seventh President Joko Widodo and sixth President Susilo Bambang Yudhoyono, jointly pressed a symbolic button marking Danantara's official establishment.

Danantara's leadership structure includes Rosan P. Roeslani as Group CEO. Rosan, who also serves as Minister of Investment and Head of BKPM, will be supported by Pandu Sjahrir as Chief Investment Officer (CIO) and Deputy Minister of State-Owned Enterprises Dony Oskaria as Chief Operating Officer (COO).

The supervisory board will be led by Minister of State-Owned Enterprises Erick Thohir as Chairman, with Muliaman Hadad appointed as Deputy Chairman.

Economic researcher from The Indonesian Institute, Center for Public Policy Research (TII), Putu Rusta Adijaya, emphasized the importance of managing Danantara with transparency, accountability, and prudence. He warned that the massive fund could risk corruption if not overseen by individuals with integrity and professionalism.

Putu highlighted that poor governance would contradict Asta Cita’s seventh vision, which aims to strengthen political, legal, and bureaucratic reforms while intensifying corruption prevention.

"President Prabowo himself acknowledged that corruption in Indonesia is alarming and is determined to combat it. Therefore, appointing leaders with high integrity is crucial to Danantara’s success. Various reports suggest that Danantara has the potential for a positive multiplier effect, steering us toward Indonesia’s Vision 2045," said Putu.

In addition, Putu urged the government to address public economic expectations through effective policies. He stressed that positive economic expectations could boost consumer spending, increase demand for goods and services, and ultimately support economic growth.

"Policymakers must also communicate their strategies clearly and honestly to maintain public trust and optimism. Effective policy communication fosters economic stability," Putu concluded.

Despite some public skepticism, President Prabowo acknowledged the doubts surrounding Danantara.

"Some may wonder whether this initiative will succeed or not," he said.

However, he viewed such concerns as natural, given that Danantara is an unprecedented initiative in Indonesia.

"This is understandable because this initiative has never existed before," Prabowo remarked.

He reassured Indonesians that with assets exceeding $900 billion, Danantara will position itself among the world’s largest sovereign wealth funds.

"Today, the people of Indonesia should be proud. With more than $900 billion in assets, Danantara will become one of the largest sovereign wealth funds globally," Prabowo concluded.

PHOTO: INSTAGRAM/@PRABOWOSUBIANTO

This article was created with AI assistance.