By: Agi Rahardian )*
The Indonesian government is increasingly optimistic that the establishment of the Daya Anagata Nusantara Investment Management Agency (Danantara) will be a driving force for a sustainable economy. President Prabowo Subianto officially launched Danantara on February 24, 2025 at the Central Courtyard of the Presidential Palace, Jakarta.
On the occasion of the launch of Danantara, President Prabowo signed Law Number 1 of 2025 concerning the third amendment to Law Number 19 of 2003 concerning BUMN and Government Regulation Number 10 of 2025 which regulates the governance of this investment agency. In addition, Presidential Decree Number 30 of 2025 was also signed to establish the supervisory board and implementing agency of Danantara.
The government has set Danantara’s initial funding at US$20 billion or around Rp326 trillion, which will be allocated to fund 15–20 projects worth billions of dollars in strategic sectors. The President emphasized that this initiative is a transformative step to create significant added value for the country.
The government is targeting economic growth of up to 8 percent per year with this investment agency. Danantara will manage assets of more than 900 billion US dollars or around 14,710 trillion rupiah, sourced from the consolidation of assets of seven large state-owned enterprises, including Pertamina, PLN, Telkom, MIND.ID, Bank Mandiri, BNI, and BRI.
Danantara is directed to invest in strategic sectors such as renewable energy, advanced manufacturing, downstream industries, and food production. The government hopes that with this approach, Indonesia can increase global competitiveness, strengthen energy and food security, and create a more professional and transparent business ecosystem. Danantara’s leadership structure has also been determined with the Minister of State-Owned Enterprises, Erick Thohir as Chairman of the Supervisory Board and the Minister of Investment and Downstream, Rosan Roeslani as Head of the Management Agency.
Support for the establishment of Danantara came from various parties. Deputy Chairman of Commission VI of the Indonesian House of Representatives, Andre Rosiade, expressed his belief that this policy would have a positive impact on national economic growth. With professional management and strengthened regulations, Danantara is believed to be able to create extensive employment opportunities and accelerate the development of economic infrastructure. Andre also emphasized that strict supervision will ensure that this investment body runs according to the principles of good governance and provides optimal benefits for the country.
Meanwhile, Permata Bank Chief Economist, Josua Pardede, assessed the presence of Danantara as a great opportunity for Indonesia to attract more foreign direct investment (FDI). With a portfolio diversification strategy that includes greenfield, brownfield, and strategic acquisition investments, Danantara is projected to be able to strengthen national economic expansion.
In addition, Josua assessed that this investment body will also increase capital market liquidity and strengthen Indonesia’s position in the global economy. According to him, investment leverage that can reach ten times the dividends of BUMN will open up the potential for significant capital mobilization for strategic projects.
The government also emphasized that Danantara will be the main instrument in strengthening priority sectors, including downstreaming of natural resources and renewable energy. Investment in downstream industries and exploration of natural resources, especially the energy sector, is projected to ensure a stable energy supply to support the growth of national industry and infrastructure. By managing investments in renewable energy projects, Danantara is also in line with the energy transition target that has been set by the government.
In addition, Danantara will also play a role in the development of advanced manufacturing projects that can increase the added value of the national industrial sector. Strengthening the manufacturing industry will be one of the main factors in accelerating economic growth and reducing dependence on imports of finished goods. With targeted investment, the Indonesian industrial sector is expected to be able to compete in the international market, creating high value-added products that can increase the country’s foreign exchange.
The government emphasized that transparency and accountability in the management of Danantara will be a top priority. With the regulations that have been prepared, every investment made will go through a strict evaluation process to ensure long-term benefits for the national economy. This step is expected to increase public trust and attract more global investors to participate in projects managed by Danantara.
In addition to macroeconomic benefits, Danantara is also projected to have a significant social impact. By opening up employment opportunities in various strategic sectors, this program is expected to improve people’s welfare and narrow the economic gap in various as the territory of Indonesia. The government is committed to ensuring that the positive impact of Danantara can be felt by all levels of society, not just by industry players and investors.
The government’s seriousness in developing Danantara reflects Indonesia’s grand vision to achieve developed country status by 2045. With a strong economic foundation and the right investment strategy, Indonesia has a great opportunity to accelerate inclusive and sustainable economic growth. The government is optimistic that through Danantara, Indonesia’s economic potential can be utilized optimally to improve the welfare of all people.
)* Economic Observer
