President Prabowo Inaugurates Danantara to Optimize Strategic Investment
By: Astrid Widia
The government continues to strengthen strategic investment management to increase national economic growth. One of the monumental steps in this strategy is the inauguration of the Daya Anagata Nusantara Investment Management Agency (Danantara) by President Prabowo Subianto on February 24, 2025 at the Presidential Palace, Jakarta.
Danantara is designed as a sovereign wealth fund that aims to optimize state wealth through strategic and sustainable investment. With assets under management reaching more than 900 billion US dollars and initial funding of 20 billion US dollars, this agency is expected to become the main instrument in accelerating economic growth and accelerating the development of priority sectors.
The establishment of Danantara is part of the third amendment to Law Number 19 of 2003 concerning State-Owned Enterprises (BUMN) which has been signed by President Prabowo.
In addition, Government Regulation Number 10 of 2025 was also issued to regulate the organization and governance of the agency. Danantara’s institutional structure is further strengthened by Presidential Decree Number 30 of 2025 which establishes a supervisory board and implementing agency to ensure that its operations run effectively and in accordance with national goals.
President Prabowo emphasized that Danantara will be the main driver in creating added economic value for the country. As an agency that manages strategic investments, this institution will play a role in channeling funds to various projects worth billions of dollars, especially in the renewable energy, advanced manufacturing, downstream industries, and food production sectors. With this step, the target of economic growth of 8 percent in the next five years is expected to be achieved more quickly.
The existence of Danantara also marks a new era in the transformation of state asset management. Deputy for Protocol, Press, and Media of the Presidential Secretariat Yusuf Permana assessed that this agency is a manifestation of Astacita’s grand vision, namely to bring the Indonesian economy to a higher level through sustainable and inclusive investment.
By consolidating BUMN assets spread across various sectors, Danantara is able to increase efficiency and optimize the economic value of assets that have not previously been managed optimally.
Danantara’s operational model adopts a similar concept to Temasek Holdings Limited in Singapore, where state assets are collected and managed in an integrated manner to generate greater profits.
With this mechanism, Danantara can collect funds from strategic assets of state-owned enterprises, which are then used as collateral for debt or even sold to increase investment capital. This step not only creates efficiency, but also opens up wider investment opportunities without burdening the State Budget (APBN).
The Head of Danantara, Muliaman Darmansyah Hadad, emphasized that this agency was formed as a solution to the need for more integrated state investment management. So far, many government assets have been managed separately by various ministries, so that they are less than optimal in creating a significant economic impact.
With Danantara, all strategic assets can be consolidated, optimized, and managed with a long-term investment approach. This also reflects President Prabowo’s commitment to creating a more modern and adaptive investment mechanism to global dynamics.
Danantara is also expected to be a more efficient alternative source of funding compared to conventional financing schemes through the APBN. With higher leverage, this institution has the capacity to channel funds to various strategic projects that are oriented towards long-term development. Sectors such as green energy, infrastructure, and manufacturing technology will be the main priorities to increase Indonesia’s competitiveness in the global market.
Danantara’s institutional structure is designed to have flexibility in managing investments and making strategic decisions. In the early stages of its operations, seven state-owned enterprises have joined under the auspices of this agency, 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). This integration aims to increase the efficiency and competitiveness of state-owned enterprises through asset optimization and more targeted investment strategies.
With various initiatives that have been designed, Danantara has become a new hope for the Indonesian economy in facing global challenges. The existence of this agency is believed to be able to bring Indonesia out of the middle-income trap and accelerate the transformation towards a developed country in the coming decades.
