 |
On Monday, February 24, at 10:00 AM WIB, Indonesian President Prabowo Subianto officially launched Danantara at the central courtyard of the Merdeka Palace. Despite the launch, many people are still asking, What is Danantara?
What is Danantara?
Danantara is an Investment Management Agency (Badan Pengelola Investasi - BPI) established to optimize the nation's wealth through strategic investments. In his speech, President Prabowo emphasized that the creation and launch of Danantara aim to transform the management of the nation's wealth for the welfare of the people, as reported by Indonesia.go.id.
Danantara is an acronym for Daya Anagata Nusantara. "Daya" means energy or power, "Anagata" refers to the future, and "Nusantara" signifies the Unitary State of the Republic of Indonesia, reflecting the strength and future potential of the country.
According to its official website, Danantara is committed to driving economic transformation with a professional approach and good governance. The body aims to enhance asset efficiency, attract global investments, and boost Indonesia’s competitiveness in strategic sectors, creating prosperity for all Indonesian citizens.
Danantara's vision is to be a leading investment manager, where strategic state-owned enterprises (SOEs) will act as enablers for its investment placements. Danantara seeks to foster Indonesia's economic transformation by establishing a world-class Sovereign Wealth Fund, supporting national development, and creating prosperity for the people.
Danantara's Mission :
- To manage state wealth professionally, transparently, and sustainably according to the principles of good governance, in line with Article 33, Paragraph 3 of the 1945 Constitution and the Asta Cita mission.
- To optimize and manage SOE assets to generate significant economic value.
- To act as a catalyst for national economic growth through strategic investments in priority sectors that enhance global competitiveness.
- To attract and accelerate both domestic and international investments by building strategic partnerships that support inclusive and sustainable national development.
- To develop an independent and excellent Sovereign Wealth Fund institution with sound financial governance focused on long-term sustainability.
Asset Management by Danantara
As reported by Indonesia.go.id, President Prabowo stated that Danantara, as Indonesia's sovereign wealth fund, will manage assets worth over $900 billion USD (approximately IDR 14,000 trillion), with an initial fund projection of $20 billion USD.
Danantara will invest capital sourced from natural resources and state assets into sustainable projects, focusing on non-state budget (APBN) investments. It will also manage assets from state-owned enterprises (SOEs). Initially, seven major SOEs will fall under Danantara’s oversight, including PT Bank Mandiri (Persero) Tbk., PT Bank Rakyat Indonesia (Persero) Tbk., PT PLN (Persero), PT Pertamina (Persero), PT Bank Negara Indonesia (Persero) Tbk., PT Telkom Indonesia (Persero) Tbk., and PT Mineral Industri Indonesia (Persero) or MIND ID, as reported by CNBC Indonesia.
However, Chief Operating Officer (COO) of BPI, Dony Oskaria, mentioned that eventually, all SOEs will come under Danantara's management. "All SOEs will be part of Danantara, not just the seven," he said during a statement at the Presidential Palace, Jakarta, on Monday (Feb. 24), as reported by CNN Indonesia.
Leadership of Danantara
President Prabowo appointed Indonesia's Ambassador to the United States, Roslan Roeslani, as the Head of BPI Danantara or CEO. According to CNN Indonesia, Danantara operates under two holding companies based on the new SOE Law. The first holding is an investment holding led by the Chief Investment Officer (CIO) of BPI Danantara, Pandu Sjahrir. This holding is responsible for managing investments, optimizing assets to increase investment value, and carrying out other tasks set by the minister or the agency. The second holding is an operational holding led by the Chief Operating Officer (COO) of BPI Danantara, Dony Oskaria.
The Supervisory Board of Danantara will be chaired by Minister of SOEs, Erick Thohir, with former Chairman of the Financial Services Authority (OJK), Muliaman D. Hadad, as Vice-Chairman. Former Indonesian Presidents Susilo Bambang Yudhoyono and Joko Widodo will also serve as advisors, along with former UK Prime Minister Sir Anthony Charles Lynton Blair, who will join the supervisory board.
Roslan Roeslani’s appointment as the Head of BPI Danantara has attracted public attention, especially since he is holding dual roles as both the Minister of Investment and the Head of BPI Danantara. Despite the criticism, Roslan has confirmed that he will continue to carry out both positions.