Danantara: Investment as the Key to Achieving 8% Economic Growth Target
Jakarta — Chief Executive Officer (CEO) of the Daya Anagata Nusantara Investment Management Agency (Danantara), Rosan Roeslani, emphasized that investment is a vital element in achieving the national economic growth target of 8%, as outlined by President Prabowo Subianto’s administration.
Speaking at the Meet the Leaders forum at Paramadina University, Rosan stated that Indonesia’s current economic growth rate—hovering around 5%—is relatively strong compared to other countries. However, to reach the ambitious 8% target, significant momentum is needed, particularly through the strengthening of the investment sector.
He outlined Indonesia’s current economic structure, which comprises 54% domestic consumption, 29% investment, 9% government spending, and 2% exports, with the remaining from other sectors.
“If we look at this structure, investment is the second-largest contributor to our economic growth. And if we consider the current situation, where can our growth realistically come from? The most plausible answer right now is investment,” said Rosan.
As the government’s investment arm, Danantara is tasked with managing dividends from state-owned enterprises (SOEs) and investing them productively to generate optimal returns for the country.
“Now we can manage this capital with the aim of generating returns. For Indonesia, the benchmark is a return of at least 10%,” Rosan noted.
He explained that over the past decade, total investment—both domestic and foreign—flowing into Indonesia has reached IDR 9,100 trillion, highlighting the vast potential of investment in driving economic growth and job creation.
As part of its medium-term strategy, Danantara also plans to allocate up to 20% of its portfolio to international investments.
“Danantara may invest up to 20% overseas, which would bring the total share of domestic and foreign investments to 35%,” he added.
This initiative is part of a long-term portfolio diversification strategy, with a target of reaching US$185 billion in total domestic and global investments over the next five years.
“Again, to create more jobs. Investment plays a critical role and is one of the key levers of economic growth, job creation, and beyond. At its core, it’s about investment,” he reiterated.
Danantara holds a strategic mandate to manage and optimize the asset portfolio of SOEs, which exceeds IDR 10,000 trillion, and direct it toward long-term investments aligned with national development priorities. To support this mission, two main divisions have been established: the Operational Holding and the Investment Holding. The Operational Holding, led by Dony Oskaria, is responsible for overseeing SOE activities, ensuring asset management efficiency, and enforcing accountable corporate governance.
“As the operational holding, we aim to build a world-class company. Currently, Danantara Indonesia oversees around 845 companies. Our task is to streamline these businesses, with a focus on optimization, efficiency, maximizing dividends, and eventually positioning among the Global Fortune 500,” explained Pandu Sjahrir, Danantara’s Chief of Investment.
The government is also encouraging increased private sector participation to strengthen the investment climate. Danantara aims to forge strategic partnerships with competent local businesses to drive industrial growth and generate high-quality employment opportunities.
“Collaborating with private sector players across industries means we act as a capital provider and local partner, while the private sector delivers value from these investments,” Pandu concluded.