Danantara Inauguration Increases Indonesian Economic Growth
By: Maya Naura Lingga
The government continues to encourage national economic growth through various strategic initiatives aimed at increasing competitiveness and creating long-term economic stability.
One of the latest steps is the inauguration of the Daya Anagata Nusantara Investment Management Agency (BPI Danantara) by President Prabowo Subianto at the Presidential Palace, Jakarta, on February 24, 2025.
This institution was formed as a sovereign wealth fund to optimize state wealth through strategic investment. Its existence is expected to strengthen the Indonesian economy by managing assets worth more than 900 billion US dollars and an initial investment of 20 billion US dollars.
With a strong structure and management policies that are oriented towards long-term results, Danantara is believed to be able to have a significant impact on the national economy.
The launch of Danantara marks a new era in the transformation of state investment management. Deputy for Protocol, Press, and Media of the Presidential Secretariat Yusuf Permana emphasized that this step is part of the government’s commitment to realizing the grand vision of Astacita.
With a sustainable and inclusive investment approach, Danantara is expected to be able to bring the national economy to a higher level. More structured management of state assets opens up greater opportunities for foreign investment and creates a more competitive business ecosystem in the regional and global areas.
The establishment of Danantara is based on the third amendment to Law Number 19 of 2003 concerning State-Owned Enterprises (BUMN). In this regulation, Danantara functions to increase the effectiveness of the management of state-owned companies, optimize dividends, and support economic growth.
Through the various authorities granted, this institution has the main task of managing BUMN assets, managing dividends, restructuring state companies, and approving various strategic investment policies. With this role, Danantara is positioned as one of the main instruments in encouraging national economic stability that is oriented towards sustainable development.
The government is targeting Indonesia’s economic growth to reach 8 percent in the next five years. To achieve this target, Danantara is designed to invest in various sustainable projects, including the renewable energy sector, advanced manufacturing, downstream industries, and food production.
President Prabowo Subianto officially signed Law Number 1 of 2025 concerning State-Owned Enterprises (BUMN). Prabowo has also appointed the Supervisory Board of the Daya Anagata Nusantara Investment Management Agency (Danantara).
In addition, the Head of State also officially signed Government Regulation Number 10 of 2025 concerning the Organization and Governance of the Daya Anagata Nusantara Investment Management Agency. This is a derivative regulation of Law Number 1/2025 concerning BUMN. In addition to the organization and governance of BPI Danantara, Prabowo has also officially appointed a number of officials as the BPI Danantara Supervisory Board.
President Prabowo Subianto emphasized that this institution plays a role as the main consolidator for BUMN assets and economic strength so that they can be managed more optimally. With synergy between various industrial sectors, Danantara has great potential in encouraging innovation, increasing productivity, and opening up more jobs for the Indonesian people.
Danantara also functions as a more efficient alternative source of funding compared to financing through the State Budget (APBN). Head of the Expert Team and Initiator of Danantara, Burhanuddin Abdullah, stated that the existence of this institution is a solution to increase domestic investment.
So far, investment efficiency in Indonesia is still relatively low, so concrete steps are needed to optimize state assets. With an asset value reaching 900 billion US dollars, Danantara is expected to be the main instrument in encouraging strategic investment and overcoming national economic challenges.
The existence of Danantara allows for more flexible and responsive investment policies to the dynamics of the global economy, so that Indonesia is no longer too dependent on external financing.
The structure of Danantara refers to the concept implemented by Temasek Holdings Limited in Singapore and has a wider scope than the Indonesia Investment Authority (INA).
This institution consolidates state assets spread across various ministries to be more integrated and efficient. In the early stages of operations, seven BUMN have joined Danantara, including PT Bank Mandiri, PT Bank Rakyat Indonesia (BRI), PT PLN, PT Pertamina, PT Bank Negara Indonesia (BNI), PT Telkom Indonesia, and Mining Industry Indonesia (MIND ID).
