Danantara Inauguration Able to Boost Economic Growth

Jakarta – The Investment Management Agency (BPI) Daya Anagata Nusantara (Danantara) was launched on February 24, 2025. The existence of this institution is believed to be able to boost national economic growth.

President Prabowo Subianto emphasized that Danantara plays a role in consolidating various assets and economic strengths of State-Owned Enterprises (BUMN) so that their management is more optimal.

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

With initial funding of US$20 billion, Danantara focuses on investment in the renewable energy sector, advanced manufacturing, downstream industry, and food production.

Prabowo is optimistic that through this strategic investment, the national economy can be pushed towards the 8 percent growth target.

Book editor and Prabowo’s confidant, Dirgayuza Setiawan, highlighted that economic growth of that magnitude requires long-term funding that cannot be fully met by national banks.

“Therefore, we established Danantara there. Danantara is the answer to long-term financial needs that BNI, Mandiri, BTN, and others may not be able to provide, especially for transition energy activities,” he said.

Dirgayuza also emphasized the importance of increasing foreign investment or Foreign Direct Investment (FDI) because domestic funds are not enough to achieve the target.

“We need to increase FDI because the money in the country is not enough for us to grow 8 percent,” he said.

Head of the Expert Team and Initiator of Danantara, Burhanuddin Abdullah, explained that the establishment of Danantara aims to increase domestic investment, which has not been efficient so far.

“So, the existence of Danantara is a prerequisite for trying to find financing for our economic growth,” said Burhanuddin.

Burhanuddin also highlighted that Indonesia needs to optimize BUMN assets, which are larger than those managed by Temasek in Singapore.

“A very rough calculation shows a figure of IDR 16 thousand trillion, around 1 trillion US dollars. This is quite big, a fairly large amount,” he said.

By optimizing the management of state investment, Danantara is expected to be a catalyst for Indonesia’s economic growth and help the country escape the middle-income trap.

“If we grow 6 percent, then we can escape the middle-income trap in 2041. If we can reach 7 percent, then we can escape the middle-income trap in 2038,” explained Burhanuddin. []