Government Urges Danantara to Focus on Strategic Investment Sectors
Jakarta – The Indonesian government, through BPI Danantara, will steer its investment focus toward eight strategic sectors to create sustainable added value and stimulate the national economy. This was stated by Arief Budiman, Managing Director of Finance at the Sovereign Wealth Fund Daya Anagata Nusantara (BPI Danantara).
“Dividends from state-owned enterprises (SOEs) will be reinvested so that Danantara can generate added value and help drive national economic growth,” said Arief.
According to Arief, Danantara aims to channel investments totaling US$5 billion (approximately IDR 81.4 trillion) in the second half of this year. These funds will be directed toward eight key sectors aligned with Indonesia’s national development agenda, including mineral downstreaming, renewable energy, digital infrastructure, healthcare services, non-bank financial services, utility infrastructure such as water and waste, industrial zones, and food security.
He added that the selection of these sectors is based not only on potential returns but also on their broader economic impact on Indonesia.
“Investment decisions will be based on three key considerations: their impact on Indonesia’s economy, return potential, and the scale of investment opportunities in the respective sectors,” Arief explained.
The government’s focus on maximizing investment through Danantara also drew attention in the June 2025 edition of the OECD Economic Outlook report. The OECD noted that accelerating the realization of public investment—particularly through Danantara—while maintaining transparency and accountability, could significantly boost national economic growth prospects.
Amid cross-sectoral budget efficiency efforts, investment through Danantara is seen as a strategic instrument to maintain growth momentum.
Meanwhile, BPI Danantara’s Chief Investment Officer, Pandu Sjahrir, emphasized that every investment decision will prioritize commercial viability and healthy returns.
“What matters most to Danantara is the rate of return and the commercial feasibility of a project,” he said.
Pandu also mentioned that these priority sectors have undergone thorough assessments based on their economic impact and alignment with Danantara’s founding vision and mission. In addition to the eight main sectors, Danantara is also exploring emerging opportunities in areas such as AI-focused data centers and advanced semiconductor manufacturing.
Paramadina University economist Wijayanto Samirin noted that although the initial investment fund of US$5 billion may be relatively small for a sovereign wealth fund, Danantara’s selective focus on strategic sectors is the right approach.
“I believe downstreaming will be a top priority, as it has the potential to deliver significant economic impact and support the transformation of Indonesia’s industrial base,” Wijayanto said.