Achieving 8 Percent Economic Growth, Danantara Becomes Alternative Funding Source

JAKARTA – The government is targeting Indonesia’s economic growth to reach 8 percent in the next five years. To support this achievement, President Prabowo Subianto has formed the Daya Anagata Nusantara Investment Management Agency (Danantara) as an alternative funding source for national development. This institution will optimize state assets and attract investment in various strategic sectors.

President Prabowo emphasized that Danantara was formed to consolidate the assets and economic strength of State-Owned Enterprises (BUMN) so that they are managed more optimally.

“Danantara is a consolidation of all economic strengths in the management of BUMN. It will later be managed and named Danantara,” he said at the Merdeka Palace in Jakarta.

According to him, the existence of this institution is a new source of economic strength that manages state assets efficiently for the welfare of future generations.

Danantara is designed to invest in sustainable projects in various sectors, including renewable energy, manufacturing, downstream industries, and food production.

Prabowo said that the initial funding for this institution reached US$20 billion, which aims to strengthen the national economy.

Book editor and Prabowo’s confidant, Dirgayuza Setiawan, assessed that long-term investment is very necessary to support the 8 percent economic growth target.

“Danantara was established as an answer to long-term financial needs that conventional banking may not be able to provide,” he said.

He added that Foreign Direct Investment (FDI) must be increased because domestic capital is not enough to achieve the economic growth target.

Meanwhile, the Head of the Expert Team and Initiator of Danantara, Burhanuddin Abdullah, explained that this agency plays a role as a solution to increase domestic investment.

“The existence of Danantara is a prerequisite in seeking funding for economic growth,” he said.

He emphasized that investment efficiency in Indonesia is still low, so optimization of BUMN assets is very necessary. With assets reaching IDR 16 thousand trillion, Danantara is expected to become an important pillar in overcoming national investment challenges.

With the formation of Danantara, the government is optimistic that 8 percent economic growth can be achieved, as well as bringing Indonesia out of the middle-income trap to become a developed country in the coming decades.
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