Government Optimistic Danantara’s Potential to Bring Success
The government is preparing to launch the Daya Anagata Nusantara Investment Management Agency (BPI Danantara) on February 24, 2025. President Prabowo Subianto is optimistic that Danantara will be an important instrument in strengthening the national economy, especially in the management of State-Owned Enterprises (BUMN). With asset management estimated to reach USD 900 billion or around IDR 14,615 trillion, Danantara is believed to be able to lead Indonesia towards more progressive and sustainable economic growth.
Danantara is a consolidation of all domestic economic strengths in BUMN management. Later, the assets managed will be used for investment in strategic sectors such as renewable energy, advanced manufacturing, downstream industries, and food production.
President Prabowo emphasized that optimizing BUMN management is one of the main priorities of his government. Danantara is present as an effort to strengthen the consolidation of state assets through a more strategic national investment agency.
Furthermore, Prabowo explained the philosophy behind the name Danantara. “Daya” symbolizes strength, “Anagata” represents the future, and “Nusantara” as a manifestation of Indonesian nationality. With this concept, Danantara is expected to be able to become an investment vehicle that is not only profitable now, but also provides benefits for future generations.
In the international forum World Government Summit held online in Dubai on February 13, 2025, President Prabowo explained that Danantara has a strategic role in achieving the national economic growth target of up to 8 percent. The government has prepared initial funding of USD 20 billion to start various major projects.
The government plans to start around 15 to 20 projects worth billions of dollars, which will create significant added value for the country. In addition, Danantara also has the potential to attract large amounts of foreign investment. One country that has shown serious interest is the United Arab Emirates (UAE).
According to the Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan, the UAE is ready to invest USD 10 billion or around IDR 163.4 trillion for the development of the renewable energy (EBT) sector in Indonesia. This investment will be made through a joint venture scheme, which will allow Indonesia to accelerate the transition to green energy. He said that his party had discussed with the UAE Minister of Energy and Infrastructure, and they were ready to contribute to renewable energy projects with a capacity of up to 10 gigawatts.
As Indonesia’s newest sovereign wealth fund, Danantara will not only manage state assets but also ensure that BUMNs work more efficiently and transparently. With a professional management structure, Danantara is expected to be able to avoid corrupt practices and mismanagement that have been challenges in managing BUMNs.
Luhut emphasized that the profits that can be gained from Danantara are very large. Assuming asset management of USD 200 billion, the potential profit per year is estimated to reach USD 25 billion or around IDR 408.5 trillion. This is a great opportunity for Indonesia to finance development without relying too much on foreign debt.
If the country can manage USD 200 billion well, the profit that can be obtained reaches USD 20-25 billion. This is a strategic step so that we can invest ourselves without relying on debt. In addition, he also ensured that the management of Danantara will be carried out by professionals and will not be filled by “favored people” who have political interests. Danantara will not be managed by people recommended by certain parties. All must be professional and have high integrity.
Although Danantara’s prospects are very promising, a number of observers have highlighted the importance of good governance so that this investment body does not experience a fate like the 1Malaysia Development Berhad (1MDB) case in Malaysia or the Bank Indonesia Liquidity Assistance (BLBI) scandal in 1998.
Law and Development observer, Hardjuno Wiwoho reminded that without a strict supervisory mechanism, there is a risk of misuse of state funds. He emphasized the importance of independent audits by international institutions and transparency in Danantara’s financial reporting.
The government itself has ensured that Danantara will implement high transparency standards with periodic audits and publication of financial reports that can be accessed by the public. Thus, the risk of misappropriation of funds can be minimized.
