Danantara Prepared as a Bridge Between Capital and National Industry
Jakarta – The Investment Management Agency Daya Anagata Nusantara (BPI Danantara) is projected to become a strategic instrument in bridging long-term financing needs with the acceleration of national industrial development. The establishment of BPI Danantara marks a new step by the government to strengthen the foundation of economic growth through focused, disciplined investment management oriented toward increasing domestic value added.
President Prabowo Subianto introduced Danantara at the World Economic Forum (WEF) in Davos, Switzerland. On that occasion, the President emphasized the importance of governance and capital efficiency as prerequisites for sustainable economic growth.
“Last February, we established our sovereign wealth fund, Danantara Indonesia,” he said.
The President explained that Danantara will serve as a new engine driving the national economy, with assets under management projected to reach USD 1 trillion. Through a sovereign wealth fund scheme, investments will be directed toward strategic sectors to foster productive and sustainable growth.
Similar optimism was expressed by the Institute for Development of Economics and Finance (Indef). Its Executive Director, Esther Sri Astuti, described Danantara as an endowment-style fund financing strategic sectors through investment returns. Indef’s simulation suggests that the reform could potentially boost GDP by nearly three percent at the outset and stabilize at around two percent in the long term, supported by productivity gains and capital accumulation.
“The benefits of Danantara depend heavily on the quality of governance, project selection, and fiscal discipline,” Esther stated.
She also underscored the importance of complementary policies to safeguard distributional impacts, including targeted social programs.
“Social programs such as MBG have the potential to mitigate short-term impacts and strengthen the legitimacy of the reform,” she added.
On the implementation side, Danantara has initiated six downstream projects across 13 locations with a total investment value of USD 7 billion. These projects cover the energy, food, mineral, and metals sectors, and are expected to generate more than 6,000 direct jobs.
Danantara Indonesia CEO, Rosan Roeslani, affirmed that downstream industrialization remains a primary focus in advancing national economic transformation.
“In the initial phase, these projects are expected to deliver tangible positive impacts on Indonesia’s economy, both through industrial value creation and job absorption. Going forward, these downstream initiatives are expected to become the backbone of stronger, more sustainable, and globally competitive economic growth,” Rosan said.
One strategic project is being carried out by MIND ID through the development of bauxite processing facilities into alumina and aluminum in West Kalimantan, aimed at strengthening the value chain and reducing imports. This initiative aligns with Danantara’s role as an investment bridge to reinforce national industry and promote sustainable growth.