Danantara Becomes a Strategic Investment Magnet Driven by Transparent and Accountable Governance
Jakarta – The launch of Danantara, a state-owned investment management institution, is seen as having significant potential to drive national economic growth. Senior economist and lecturer at the Faculty of Economics and Business, University of Indonesia, Fithra Faisal Hastiadi, sees Danantara not merely as a fiscal instrument, but as a game changer capable of accelerating the flow of investment—particularly foreign investment—into Indonesia’s strategic sectors.
“The potential is enormous, but the fundamental aspect that must be strengthened first is governance,” said Fithra.
He emphasized that global markets today are placing high value on transparency and accountability, two elements that Danantara has committed to from the outset.
Danantara is expected to serve as a vital bridge in addressing the country’s investment challenges. The government is targeting 8% economic growth, which, according to Fithra’s calculations, requires approximately IDR 10 trillion in investment. However, domestic capacity can only provide about IDR 3 trillion, leaving a gap of IDR 7 trillion that needs to be filled by foreign investors.
“Danantara is a crucial platform to bridge that gap,” he added.
Six strategic sectors have been identified as investment priorities: energy, information and communication technology (ICT), housing, transportation, water sanitation, and water resources. Among these, renewable energy is viewed as highly promising, due to increasing interest from European and Chinese investors—particularly as the United States distances itself from green policies under Donald Trump’s administration.
To meet national housing needs, for example, the government has set a target of building 3 million housing units per year. However, the national budget can only finance around 257,000 units.
“Foreign investors like Qatar have already committed to building 1 million homes. This is concrete proof of Danantara’s role in attracting strategic investment,” Fithra explained.
On the issue of transparency, Danantara is described as having a multi-layered oversight system involving institutions such as the Supreme Audit Agency (BPK), Financial and Development Supervisory Agency (BPKP), Corruption Eradication Commission (KPK), the Attorney General’s Office, the National Police, and independent auditors.
“Danantara is like an aquarium—everything it does is transparent and open,” he stressed.
Furthermore, Danantara carries a dual function as both an investment institution and a development agency, similar to development finance institutions in advanced economies. The challenge, Fithra notes, is to strike a balance between economic returns and social benefits. He even supports Danantara investing in labor-intensive sectors such as waste management, which have proven to deliver broad social impact and possess strong economic potential.
Regarding the market’s reaction to Danantara’s launch, including the dip in the Indonesia Stock Exchange (IHSG), Fithra views it as a normal response amid ongoing global uncertainty.
“Indonesia, in fact, is a light in the darkness. Our stability is better than that of many major countries,” he concluded.
