The Role of Danantara in Driving Innovation and Investment in Priority Sectors
By: Arga Wibisana)*
The Investment Management Agency Daya Anagata Nusantara, known as Danantara Indonesia, has begun to demonstrate its strategic role in encouraging national investment that directly impacts economic development. Amid global challenges and the urgent need to accelerate economic transformation, Danantara has emerged as a key instrument to strengthen priority sectors, enhance competitiveness, and create broader employment opportunities. Its contribution is reflected not only in the scale of investment value, but also in policy directions that emphasize innovation, downstreaming, and equitable development.
In 2026, Danantara Indonesia is preparing to invest in four priority projects with a total value of Rp202.4 trillion. These projects are Wamena, Cordova, Fukuoka, and Johor. The plan was conveyed by Danantara Indonesia CEO Rosan Roeslani during the Indonesia Economic Outlook 2026 event in Jakarta. According to Rosan, the investments extend beyond downstream industrial projects, encompassing waste-to-energy processing, strengthening the chemical industry, developing data centers, building global operator partnership platforms, and expanding overseas investments such as in Australia.
The Wamena Project stands out as one of the largest, focusing on the development of Waste-to-Energy facilities across 33 cities. With an investment requirement of Rp84 trillion, it is projected to generate a multiplier effect of up to ten times. This initiative is considered strategic as it addresses environmental challenges while simultaneously producing economically valuable renewable energy. Furthermore, the project is expected to stimulate supporting industries in various regions.
The Cordova Project, valued at Rp13.4 trillion, centers on the development of a caustic soda facility. It is designed to support national industrial downstreaming and is projected to create a fivefold multiplier effect. The presence of this facility is expected to strengthen domestic industry and reduce dependence on imported chemical raw materials, which have long been essential to the manufacturing sector.
The digital sector is also prioritized through the Fukuoka Project, which involves the development of a Data Center Platform in partnership with global operators. With an investment value of Rp21 trillion and a projected sixfold multiplier effect, the project reflects the urgency of building robust digital infrastructure. In the digital economy era, data centers serve as the backbone of information technology infrastructure, supporting data security and strengthening the national digital ecosystem.
Meanwhile, the Johor Project targets the agricultural sector with an investment of Rp84 trillion and a projected twofold multiplier effect. This initiative reaffirms agriculture as a crucial priority in maintaining food security and strengthening the people’s economy. With substantial investment support, the agricultural sector is expected to improve productivity, expand market access, and enhance farmers’ welfare.
Beyond these four projects, Danantara Indonesia has taken concrete steps by breaking ground on six first-phase downstreaming projects on February 6, 2026. The total investment for these projects amounts to US$7 billion, or approximately Rp110 trillion, spread across 13 regions. Rosan Roeslani emphasized that these downstreaming projects will serve as catalysts for national economic growth, expand employment opportunities, and strengthen regional economies. He stressed that such investments are not merely about industrial construction, but also about delivering tangible benefits to community welfare.
The first-phase downstreaming projects include two bauxite downstream facilities worth around US$3 billion, as well as the development of bio-aviation fuel, bioethanol, salt industries, and integrated poultry farming. These initiatives are aligned with government priorities, particularly in strengthening industrial resilience and enhancing the value-added of domestic products.
Over the past year, the government has recorded several significant achievements that reinforce the national investment climate. Macroeconomic stability has been relatively well maintained, strategic infrastructure development continues, and downstreaming policies have begun to yield results. Efforts to control inflation and increase investment realization demonstrate the government’s ability to maintain investor confidence while reinforcing the foundations of economic growth.
Danantara’s role also extends to social development and disaster recovery. The agency initiated the construction of permanent housing in Rambatan District, Tanah Datar Regency, West Sumatra. This groundbreaking marks part of efforts to accelerate post-disaster recovery and stimulate local economic revival. The housing project is not only intended to provide shelter but also to symbolize social and economic recovery.
Danantara Chief Operating Officer Dony Oskaria underlined the broader significance of the permanent housing initiative. He described it as a symbol of mental and economic revival, particularly as West Sumatra’s economic growth stands at around 3.5 percent with inflation reaching 6 percent. According to Dony, swift action is necessary to prevent broader social challenges.
Danantara is also strengthening the education sector through plans to build Sekolah Rakyat, which will accommodate approximately 3,000 students with free, high-quality education from elementary to senior high school levels, complete with dormitory facilities. The permanent housing is targeted for completion within three to four months to ensure immediate occupancy.
Tanah Datar Regent Eka Putra expressed the local government’s full support by preparing 1.8 hectares of land along with an additional 4 hectares reserved for further development. The local administration is also preparing economic empowerment programs such as farmer group formation and sewing machine assistance to support residents’ livelihoods.
Through substantial investments in priority sectors and support for regional recovery, Danantara increasingly affirms its position as a key driver of national economic growth. With synergy between the government, Danantara, and various stakeholders, these investments are expected to accelerate development, expand prosperity, and guide Indonesia toward a stronger and more competitive economic future.
)* Development Economics Researcher