Danantara Drives Fiscal Growth Through Strategic Investment and Productive Asset Management

By: Agus Soepomo

The launch of the Daya Anagata Nusantara Investment Management Agency (Danantara) marks a new chapter in the history of state asset management. The government is affirming a new national fiscal direction by establishing Danantara as an engine for economic growth based on productive investment and strategic asset management.

This step reflects the determination to transform state asset management from merely consumptive to an instrument for sustainable development with high added value.

President of the Republic of Indonesia, Prabowo Subianto, emphasized that Danantara’s presence is not merely the formation of a new institution, but rather a paradigm shift in managing the nation’s assets.

In his view, Danantara functions as a national development instrument that optimizes state assets and investments to generate real benefits for the people. He believes that fiscal management must be oriented towards productivity, not merely maintaining budget balance.
 
In the first 100 days of his administration, the President recorded success in securing more than IDR 300 trillion, or nearly US$20 billion, as a form of fiscal discipline.
 
These funds will be invested through Danantara for national strategic projects, particularly those focused on industrialization and downstreaming. He stated that high-value-added projects will create quality jobs and strengthen the long-term economic foundation. He considered Danantara a concrete manifestation of the government’s commitment to managing state assets efficiently, transparently, and results-oriented.
 
The President also emphasized that Danantara’s management must be carried out with prudence and full accountability. He viewed the institution as a symbol of new energy for the nation, which will lead Indonesia toward economic independence and sustainable prosperity.
 
With optimism, he affirmed his belief that Indonesia is moving toward the status of a developed and economically sovereign nation through measured fiscal governance reforms.
 
The Deputy Chairman of the Danantara Supervisory Board, Muliaman D. Hadad, views the institution as a significant breakthrough in building a more resilient economic foundation. He explained that Danantara functions like a sovereign wealth fund (SWF), managing state-owned enterprise assets and dividends to make them more productive.
 
According to him, the potential for SOE assets to be consolidated through Danantara reaches approximately US$1 trillion—a figure that reflects the strength of the domestic economy if managed professionally and efficiently.
 
Muliaman emphasized that Danantara focuses not only on fund management but also on creating new economic value through strategic investments in eight priority sectors: renewable energy, minerals and mining, digital infrastructure, financial services, healthcare, food, industrial estates, and property. He believes this policy direction will strengthen national economic independence while accelerating the transformation towards the Golden Indonesia Vision 2045.
 
Unlike SWFs in oil-producing countries, Muliaman explained that the Danantara model relies on non-commodity management based on SOE business results.
 
This approach allows Danantara to maximize domestic assets without relying on fluctuations in global energy prices. He believes this makes Danantara a form of structural reform in state asset management that prioritizes efficiency, performance, and transparency.
 
Meanwhile, Firnando Ganinduto, a member of Commission VI of the Indonesian House of Representatives (DPR RI), viewed Danantara’s presence as a strategic step by the government to strengthen state-owned enterprise (SOE) governance to make it more adaptive and globally competitive. According to him, Danantara is not merely an investment entity, but also an instrument for transforming state-owned enterprises toward more transparent and professional governance.
 
Firnando emphasized that Commission VI of the DPR RI views Danantara as a catalyst for SOE restructuring in priority sectors that have a direct impact on national economic growth.
 
He believes the institution can play a role in financing strategic projects with a performance-based investment approach and rigorous feasibility studies. This way, every rupiah invested will provide tangible returns for the national economy, rather than simply adding to the fiscal burden. He added that Commission VI of the Indonesian House of Representatives (DPR RI) is ready to carry out its oversight function to ensure that every Danantara investment is carried out in accordance with the principles of public accountability. According to him, synergy between Danantara, the Ministry of State-Owned Enterprises, and the private sector is key to creating a healthy and innovative investment ecosystem. Reforming the funding model through Danantara is expected to reduce dependence on the state budget and expand the scope for investment.state scale for productive development.

Firnando believes that investment reform through Danantara has strategic significance beyond mere fund management. He views the institution as a symbol of a shift towards efficiency and global competitiveness.

With a professional and flexible approach, Danantara is expected to build a sustainable financing structure and strengthen Indonesia’s position amidst international economic competition.

The fiscal transformation driven by Danantara marks a significant shift from the traditional financing paradigm to productive state wealth management. Through strategic asset management and investment in priority sectors, Danantara is expected to become a fiscal anchor that strengthens national economic resilience.

More than just an investment institution, Danantara reflects a new direction for the Indonesian economy—one that positions asset management as a source of growth, not merely a complement to fiscal policy.

With a strong governance foundation, long-term strategic vision, and cross-sector collaboration, Danantara has the potential to be a key instrument in leading Indonesia towards economic independence and sustainable prosperity. (*)

Economic Policy Consultant – People’s Economic Forum