Formation of Danantara Increases Optimization of BUMN Management

Jakarta – President of the Republic of Indonesia, Prabowo Subianto, revealed the purpose of establishing an agency designed to optimize the management of State-Owned Enterprises (BUMN) assets, namely Daya Anagata Nusantara (Danantara).

In a closed meeting, President Prabowo explained that Danantara aims to consolidate Indonesia’s economic strength in the management of BUMN, as well as to make a significant contribution to achieving national economic growth.

“Danantara is a consolidation of all our economic strength in the management of BUMN. This will be a new breath and economic strength for Indonesia. With Danantara, we hope that the management of state assets can be carried out properly and as efficiently as possible, so that the results can be enjoyed by future generations,” said President Prabowo.

Former Governor of Bank Indonesia, Burhanuddin Abdullah, added that the formation of Danantara aims to attract more foreign investors to Indonesia. Danantara will involve BRI, Bank Mandiri, and BNI; while in the energy sector there are PLN and Pertamina.

“Danantara will consolidate BUMN in a more efficient and transparent manner. This is a very valuable capital for the nation’s journey to realize Indonesia Emas,” said Burhan.

Meanwhile, the Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, stated that the formation of Danantara was a strategic step that strongly supports the government’s vision to make BUMN the spearhead of Indonesia’s economic development.

“Danantara will enable joint ventures with many companies, increase efficiency, and create better transparency. This is a strategic decision that will have a positive impact on our economy,” explained Luhut.

For information, Danantara will manage funds of more than US$900 billion (around Rp14,715 trillion) in the form of assets under management (AUM). The projects managed by Danantara, which are estimated to be worth billions of dollars, are expected to provide significant added value to the country, while also driving Indonesia’s economic growth to achieve the target of 8 percent.

In the initial stage, Danantara will start around 15 to 20 large projects, with initial funding reaching US$20 billion. These projects are expected to accelerate the transformation of the national economy, create new jobs, and increase the competitiveness of strategic sectors in Indonesia.

The public is expected to fully support this program initiated by the government, because Danantara has great potential to optimize the management of state assets, as well as create economic strength and investment funds that can provide long-term benefits.

Through more efficient and transparent management of BUMN, Danantara will become an important pillar in realizing Indonesia’s ideals as an advanced and prosperous country.