By: Andhika Rachma
President Prabowo Subianto’s administration has set a new direction for national economic development through the launch of the Badan Pengelola Investasi Daya Anagata Nusantara (Danantara). This agency is not only designed to mobilize and manage investment funds but also to act as a catalyst for the structural transformation of Indonesia’s economy over the next five years. With an ambitious target of 8% annual economic growth, Danantara has been tasked as the backbone to realize this grand vision.
Rosan Roeslani, Chief Executive Officer of Danantara Investment Management Agency (BPI), stated that through synergy between the government, private sector, and investment management institutions like Danantara, they are optimistic Indonesia can achieve this 8% growth target. He hopes this effort will not only generate quantitative growth but also deliver tangible benefits to the welfare of the people.
President Prabowo refers to Danantara as a “strategic weapon” to accelerate infrastructure development, strengthen national industries, and ensure that prosperity reaches even the most remote areas. Unlike conventional financial institutions, Danantara adopts a hybrid approach combining sovereign wealth fund (SWF) principles—similar to Singapore’s Temasek Holdings—but with a more inclusive local nuance. It is not merely a manager of state assets but also a bridge between public and private capital for long-term, strategic projects.
With an initial asset base of IDR 1,400 trillion (approximately USD 90 billion), Danantara ranks as one of the largest investment entities in Southeast Asia. This vast fund demonstrates that the government is not merely patching budget deficits or chasing instant growth but is designing a solid foundation for long-term economic stability.
Rosan Roeslani revealed that the synergy between the state, private sector, and investment institutions will be key to achieving the 8% growth target. According to him, this growth is not just about numbers but must directly benefit the community through job creation, income improvement, and equitable infrastructure development.
Since its launch in February 2025, Danantara has moved swiftly to explore strategic investment opportunities. One concrete step has been signing a memorandum of understanding with PT Chandra Asri Pacific valued at USD 800 million to build a green chemical plant in West Java. This project is expected to reduce dependence on imported chemical raw materials while strengthening the domestic industry’s downstream sector. More importantly, it will create thousands of new jobs and support environmental sustainability agendas.
Beyond petrochemicals, Danantara has also focused on priority sectors such as green energy, transportation infrastructure, and digital technology. This aligns with the priorities of the Prabowo-Gibran administration to drive economic transformation from consumption to production and innovation sectors.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that Danantara embodies the spirit of economic independence. Indonesia cannot continue to rely on external financing, and through Danantara, the government has the capacity to mobilize domestic capital more productively and measurably.
To maintain credibility and good governance, Danantara has engaged several global figures as advisors, including economist Jeffrey Sachs, investor Ray Dalio, and former Thai Prime Minister Thaksin Shinawatra. This international collaboration is expected to bring the best global practices into the agency’s management. Nationally, the presence of figures like Sri Mulyani Indrawati on the supervisory board further affirms a commitment to transparency and accountability principles.
However, this bold move has not been without controversy. Some criticism has arisen regarding the government’s policy to divert a significant portion of ministry budgets to Danantara. An investigative report by The Australian even labeled this decision as a form of “high-risk fiscal populism” and warned of potential fund misappropriation similar to Malaysia’s 1MDB case. Nevertheless, the government strongly denies these allegations.
Presidential Spokesperson Dahnil Anzar Simanjuntak emphasized that all budget allocations to Danantara are under strict supervision by agencies such as the Corruption Eradication Commission (KPK), the Audit Board (BPK), and other independent bodies. He stressed that the government is serious about the nation’s future and that all policies are made with caution.
Bureaucratic efficiency efforts within the first 100 days of the Prabowo-Gibran administration have yielded significant results. The government successfully saved up to IDR 300 trillion in the budget, most of which was allocated to Danantara. According to Rosan Roeslani, the agency he leads targets a dividend of IDR 150 trillion in the first fiscal year. He also affirmed that all investment projects will undergo rigorous feasibility assessments involving professional partners, including world-class financial consultants such as BlackRock and McKinsey.
Danantara’s success will heavily depend on two critical elements: political stability and technocratic capacity. Without solid political support and consistent policy direction, an institution of this scale is vulnerable to conflicts of interest. Conversely, the ability to select and execute high-value projects professionally will be the main indicator of its success.
If these two pillars are maintained, Danantara will not only become a new financial institution but also a symbol of a new chapter in Indonesia’s economic development—a sovereign, innovative, and socially just economy.
