Danantara’s Management of State Assets Strengthens Fiscal Structure and Reduces Dependence on the State Budget

By: Bagus Pratama
The Indonesian government has affirmed a new direction for national fiscal policy by launching the Daya Anagata Nusantara Investment Management Agency (Danantara). This institution is designed not only as a strategic investment vehicle but also as a primary instrument for strengthening the fiscal structure and reducing dependence on the State Budget (APBN). Through professional and integrated management of state assets, Danantara serves as a crucial catalyst for sustainable economic transformation.

Minister of Investment and Downstream Development, Rosan Roeslani, emphasized that the establishment of Danantara represents a major reform step in state asset management. He views the institution as a breakthrough with a significant impact on national fiscal stability and resilience.

In his view, Danantara functions not only as an investment management institution but also as an alternative source of financing for strategic projects without increasing the burden on the state budget or increasing national debt.

 
Rosan emphasized that Danantara’s primary mandate is to optimize the assets of State-Owned Enterprises (SOEs), which have not been optimally managed. With total assets reaching approximately US$900 billion, Danantara is directed to transform passive assets into productive sources of economic strength.
 
He believes that efficient and results-oriented asset management will strengthen the government’s fiscal capacity, while creating added value for the community through job creation and the development of strategic industrial sectors.
 
In his directive, President Prabowo Subianto requested that Danantara be managed with strong, transparent, and high-integrity governance. Rosan explained that the principles of prudence and good governance are the primary guidelines for every investment decision. Through an organizational structure consisting of a supervisory board, an audit committee, and an ethics committee, Danantara ensures public accountability throughout the process.
 
Rosan believes that Danantara’s presence also demonstrates the government’s efforts to strengthen the foundations of the national economy through productive investment. He believes the institution can be a crucial instrument in accelerating Indonesia’s economic growth to 8 percent per year, in line with the government’s target of becoming a high-income country. For Rosan, Danantara is not just a fund manager, but rather a new driving force for inclusive and sustainable economic growth.

A similar view was expressed by Herry Gunawan, an economist from the NEXT Indonesia Center. He believes Danantara plays a significant role in strengthening the fiscal structure by creating alternative funding sources outside the state budget.

In his view, the institution’s existence can reduce the government’s dependence on debt-based financing and provide broader fiscal space for social spending and priority development.

Herry explained that Danantara’s mandate aligns with the best practices of sovereign wealth funds (SWFs) in various countries, such as Temasek and GIC in Singapore, which can contribute up to 20 percent of total central government spending.

He believes Danantara has the potential to become a source of sustainable financing through investment returns and optimization of state assets, ultimately strengthening Indonesia’s fiscal position on the global stage.
 
Furthermore, Herry highlighted Danantara’s crucial role in improving the efficiency of state-owned enterprises (SOEs) and deepening the domestic capital market. By consolidating more than a thousand SOEs across 12 strategic sectors, Danantara has the potential to create business synergies that improve the financial performance of state-owned corporations. He believes this move will not only strengthen the fundamentals of the national economy but also attract global investors to invest in Indonesia.
 
Danantara, in Herry’s view, also has a multiplier effect on the national economy. Through transparent asset management and investments in priority sectors such as green energy, digital infrastructure, and healthcare, the institution can expand the productive economic base and create quality jobs. Thus, its contribution is not only fiscal but also structural in strengthening Indonesia’s economic competitiveness.
 
Meanwhile, President Prabowo Subianto assessed Danantara’s performance during the first year as an important foundation for strengthening national economic resilience. He stated that Indonesia’s stable economic growth of around five percent, amidst global uncertainty, is the result of the synergy of fiscal policy and the role of strategic investment institutions like Danantara. The President also emphasized the success of maintaining the state budget deficit below three percent of GDP as well as the increase in the market confidence index which is reflected inin from the JCI’s record of 8,000 points.

Through this achievement, Danantara has successfully demonstrated its capability as a new national fiscal driver. This institution has managed assets worth more than US$1 trillion and received Rp140 trillion in dividends from state-owned enterprises to invest in various national strategic projects. In the next five years, this investment value is projected to reach Rp750 trillion, which will make a significant contribution to state revenue outside the tax sector.

With professional governance, high integrity, and a focus on sustainable investment, Danantara is expected to become a key foundation in realizing Indonesia’s fiscal independence.

Through optimizing productive assets and creating economic added value, this institution not only strengthens the country’s fiscal structure but also affirms a new direction for national development based on efficiency, innovation, and sustainability.

Danantara’s role reflects the important transition from a budget-based economy to an asset-based economy. By managing state assets productively and transparently, Indonesia is moving closer to fiscal independence, which not only supports short-term growth but also ensures the welfare of future generations. (*)
Macroeconomic Analyst – Nusantara Economic Research Institute