Danantara Launch Becomes a New Future for the Indonesian Economy

JAKARTA – The Indonesian government will inaugurate the Daya Anagata Nusantara (Danantara) Investment Management Agency (BPI) on February 24, 2025. President Prabowo Subianto emphasized that Danantara will become a new economic force that supports national development in various strategic sectors.
The announcement regarding the inauguration of Danantara was delivered directly by the President at the 2025 World Governments Summit international forum in Dubai, United Arab Emirates. The President stated that Danantara is a form of consolidation of the country’s strategic assets to strengthen national economic resilience.
“Danantara is a consolidation of all our economic strengths in the management of BUMN. This is the energy and strength of Indonesia’s future,” said President Prabowo.
Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan revealed that Danantara’s initial funding reached 25 billion US dollars or equivalent to Rp327.2 trillion. One source of funding comes from foreign investment, including investors from Abu Dhabi who have committed to investing US$10 billion for a 10-gigawatt green power plant project.
“Abu Dhabi will build 10 gigawatts, it will go into renewable energy. The value is US$10 billion,” said Luhut.
A number of economists believe that Danantara can be a breakthrough in managing state assets. Paramadina University economist Wijayanto Samirin assessed that the formation of Danantara will reduce the dependence of BUMN on State Capital Participation (PMN) and increase flexibility in attracting investment.
“The Danantara format makes it more agile in attracting investment compared to the conventional BUMN format. As a result, the dependence of State-Owned Enterprises (BUMN) on PMN can be reduced,” he said.
In line with that, the Executive Director of the Center of Economic and Law Studies (Celios), Bhima Yudhistira, said that Danantara could be the main driver in funding new renewable energy (EBT) projects and early retirement programs for coal-fired steam power plants (PLTU).
“The most important thing is that the assets pledged are assets outside of coal-fired power plants,” he said.
BPI Danantara was formed after the ratification of the Draft Law (RUU) on the third amendment to Law Number 19 of 2003 concerning BUMN into law in the DPR Plenary Meeting on February 4, 2025. This institution is projected to manage assets of more than 900 billion US dollars or around Rp14,000 trillion, with initial funds of 20 billion US dollars (around Rp320 trillion). The funds will be used to finance sustainable projects, including renewable energy, advanced manufacturing, and downstream industries.
The launch of Danantara is expected to be the beginning of a more independent and sustainable transformation of the Indonesian economy. With transparent governance and long-term investment-based governance, Danantara is believed to be able to become the main instrument in accelerating national economic growth and attracting more foreign investment to the country.{}