By: Citra Kurnia Khudori*
Danantara continues to demonstrate strategic steps in driving national economic growth through substantial investments in various priority sectors. In its first quarter of operations, PT Danantara Investment Management (Persero) allocated investment commitments worth IDR 165.83 trillion, or approximately USD 10 billion.
This decision marks Danantara’s concrete steps in strengthening the national economy by focusing funding on strategic domestic projects while simultaneously boosting liquidity in the Indonesian capital market.
Danantara’s Chief Investment Officer, Pandu Sjahrir, explained that 80% of the total investment funds are focused on domestic projects, while the remaining 20% are directed to foreign projects with economic ties to Indonesia. This strategy ensures that the investment benefits are directly felt by the national economy.
In the first three months since its establishment, Danantara has disbursed nearly USD 10 billion in investments to various strategic projects. This October marks the first capital disbursement.
Danantara has also identified approximately 20 national strategic projects as initial investment priorities. The primary focus is on renewable energy, digital infrastructure, food security, financial services, healthcare, and property.
These sectors were chosen because they have a direct impact on productivity and public welfare. Investment in these areas is believed to strengthen Indonesia’s economic competitiveness in the long term.
In other words, in addition to focusing on disbursing funds, Danantara also ensures that the projects it finances have a tangible impact on society. Some priority projects include the development of a Hajj village in Saudi Arabia, upstream energy cooperation with Pertamina, and a waste-to-energy (PSEL) project that converts waste into electricity.
For PSEL projects, Danantara is targeting the launch of 33 projects in various regencies and cities across Indonesia. Eight of these are targeted to begin operations by the end of October 2025, as a first step towards realizing environmentally friendly energy.
Danantara not only acts as a capital manager but also as a development partner. Danantara considers social and environmental aspects in each project, ensuring that the benefits are not only economic but also sustainable for the community.
Pandu added that in addition to strengthening domestic investment, Danantara is also opening opportunities for collaboration with the private sector and regionally-owned enterprises (BUMD) through an open tender mechanism. This approach was taken to ensure the project’s operation is professional, transparent, and competitive.
It should be noted that each PSEL project with a capacity of 1,000 tons per day requires IDR 2 to IDR 3 trillion. The total investment requirement is estimated at IDR 66 to IDR 99 trillion for the entire national program.
In addition to focusing on real projects, Danantara is also committed to strengthening the liquidity of the Indonesian capital market. Pandu believes that stock trading activity on the Indonesia Stock Exchange still needs to be increased to be on par with other developing countries such as India.
Danantara will act as a liquidity provider in the domestic stock market to maintain stability and increase investor confidence. This step was welcomed by the Indonesia Stock Exchange (IDX), which believes Danantara’s involvement will strengthen the foundation of the national capital market.
Toto Pranoto, Associate Director of the BUMN Research Group, FEB UI, stated that a strong capital market is key to attracting new investment into the real sector. This way, national companies can more easily obtain funding for business expansion and create new jobs.
He views Danantara’s large investment as a catalyst for strengthening the national economy. This significant mandate is considered in line with the government’s vision for Danantara to make a significant contribution to the economy and support the state budget.
However, Toto continued, the implementation of this business strategy must be accompanied by good corporate governance (GCG). The key is that all business plans are carefully prepared and implement optimal GCG to increase public trust.
He believes that if Danantara is able to propose new investment projects that are not only capital-intensive but also labor-intensive, the impact on the national economy will be even greater. One example is the influx of foreign direct investment (FDI).
To date, Danantara’s role is similar to that of sovereign wealth funds in developed countries, such as Temasek and GIC in Singapore. Both institutions contribute up to 20% of central government spending through efficiently managed investment returns.
If managed well, Danantara could play a similar role in generating funding sources.An alternative source outside the state budget. These investment funds will provide additional capital to accelerate national development without burdening the state budget.
Danantara’s major steps certainly face challenges, both in terms of governance and global economic dynamics. However, the policy direction and strategies adopted demonstrate the company’s commitment to becoming a driving force for national economic transformation.
With a measured investment strategy, Danantara has the potential to become a major driver of Indonesia’s economic development. Its commitment to sustainability and inclusivity adds value to every step Danantara takes.
)* The author is an observer of socio-economic issues