Indonesia launches sovereign wealth fund to manage assets worth US$900 billion; initial budget to kickstart 20 ‘strategic projects’

JAKARTA: A new Indonesian sovereign wealth fund aims to manage the assets of all state-owned enterprises in the country worth more than US$900 billion, with President Prabowo Subianto saying that the fund will invest in 20 or more high-impact national projects this year.

Speaking at the launch of the Daya Anagata Nusantara – or Danantara – fund on Monday (Feb 24), Prabowo said that the first wave of investments worth US$20 billion would be used for “strategic projects” involving nickel, bauxite, copper, food production, renewable energy, artificial intelligence, oil refineries and petrochemical plants.

“These are the sectors that will determine our future, our resilience and our nation’s independence,” said Prabowo. 

When assuming office in late October, Prabowo had set a target annual economic growth of 8 per cent. It currently is at about 5 per cent. 

Prabowo on Monday said Indonesia is ready to collaborate with everyone, including foreign partners, to make Danantara a success story and create new jobs. 

“Indonesia sends a clear message to all friends and partners worldwide (that) Indonesia is open for collaboration, open for business, open for investment, and open to shared prosperity,” he said. 

“Danantara Indonesia will allow us to expand our international cooperation, and I hope that all global partners will recognise Indonesia’s potential not just as an emerging economy but also as a pillar of regional stability and shared progress.”