By: Gavin Asadit
The Government of Indonesia, through the establishment of the Sovereign Wealth Fund Badan Pengelola Investasi Daya Anagata Nusantara (Danantara), has launched a strategic initiative to strengthen the national economic foundation. Danantara was created as Indonesia’s sovereign wealth fund, designed to productively manage state-owned enterprise (SOE) dividends through long-term investment schemes. The fund targets investments totaling IDR 81.4 trillion this year, sourced from SOE dividends amounting to IDR 120 trillion. These funds will be directed toward eight national priority sectors: mineral downstreaming, renewable energy, digital infrastructure, healthcare services, financial services, industrial zones, public infrastructure, and food security.
In shaping its investment portfolio, Danantara adopts a fully commercial approach. Chief Investment Officer Pandu Sjahrir emphasized that every project must demonstrate strong return potential and economic competitiveness. He stated that the fund’s investment focus will be on strengthening added value and delivering concrete outcomes that stimulate national growth. Pandu added that the institution will be highly selective, prioritizing only initiatives that meet financial feasibility criteria and contribute to the structural transformation of the Indonesian economy.
In line with this, Danantara’s Managing Director of Finance, Arief Budiman, reiterated the institution’s strategic role in ensuring the effective use of SOE dividend funds. Arief explained that the fund’s mission goes beyond generating profits—it also aims to create a multiplier effect for the national economy through responsible and measured investments. He added that the economic value of each rupiah invested will serve as a key performance indicator for the institution’s success.
Danantara also demonstrates its commitment to good governance through operational transparency. The government has firmly committed to transparency by subjecting the fund to regular audits and independent oversight, maintaining its credibility with both the public and investors. This transparency is intended to build trust among domestic and international investors, positioning Danantara as a credible player in national development financing.
Support from SOEs forms a critical pillar of Danantara’s funding structure. Seven major SOEs have contributed dividends totaling IDR 81.7 trillion—accounting for 95.55% of total SOE dividends. These companies include PT Bank Mandiri (Persero) Tbk, PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank Negara Indonesia (Persero) Tbk, PT PLN (Persero), PT Telkom Indonesia (Persero) Tbk, PT Pertamina (Persero), and PT Mineral Industri Indonesia (MIND ID). This involvement reflects the transformation of SOEs into active agents of development through their tangible contributions to strategic state financing.
From a long-term perspective, President of the Republic of Indonesia, Prabowo Subianto, has declared Danantara as a key instrument in realizing investments worth IDR 325 trillion across 20 national strategic projects. These projects include the development of nickel, bauxite, and copper downstream industries, AI and data center infrastructure, energy facilities such as refineries and petrochemical plants, as well as food production, aquaculture, and renewable energy initiatives. The President emphasized that these sectors are vital for achieving economic independence and national resilience, especially amid an increasingly competitive and volatile global environment.
Meanwhile, Hashim Djojohadikusumo—who plays an active role in shaping national fiscal policy—stated that efficient government budgeting can generate additional fiscal space of up to IDR 327 trillion per year. According to him, this could serve as initial capital (equity) to support Danantara. He also highlighted the potential of co-investment schemes, which could multiply this capital up to fourfold. In this model, IDR 327 trillion in capital could grow to over IDR 1,200 trillion when combined with strategic investment partners. This approach is viewed as a forward-looking development model that does not directly burden the state budget (APBN) while having a major impact on development acceleration.
However, the formation of Danantara also faces several challenges. International credit rating agency Fitch Ratings noted that increased dividend obligations on SOEs could strain their credit profiles. Another risk is the possibility of politically driven or inefficient investment decisions if not safeguarded by a robust oversight mechanism.
Danantara’s success will not only be measured by the amount of capital deployed, but by its ability to deliver measurable and sustainable economic impacts. The institution is expected to be a key catalyst for real sector growth, job creation, industrial competitiveness, and ultimately, the improvement of public welfare. Additionally, Danantara has the potential to elevate Indonesia’s global position as a developing nation with modern, adaptive sovereign wealth governance.
Danantara’s establishment represents a paradigm shift in public finance management—from consumption-based fiscal spending to long-term impact investments. If executed consistently with professionalism, accountability, and a focus on strategic economic value, Danantara could become a landmark policy legacy that reshapes the future of Indonesia’s development.
The author is a Social and Community Affairs Observer.
