Indonesia Approves Creation of Second Sovereign Investment Fund
The Diplomat | 5 February 2025
The Danantara fund, which will be seeded with at least $61 billion, will be placed under the direct supervision of the president’s office.
Indonesia’s parliament has approved the creation of a new sovereign investment fund in order to manage some of the country’s most important state-owned enterprises and generate capital for Indonesian investments elsewhere.
The new body, which will be called the Daya Anagata Nusantara Investment Management Agency, or Danantara, will assume control over all government holdings in state companies from the State-Owned (SOE) Ministry.
“Danantara is officially set up and formed in order to consolidate the management of state-owned companies and optimize the management of dividends and investments,” Erick Thohir, the minister of state-owned enterprises, told parliament after the law’s passage.
Danantara, which was announced soon after President Prabowo Subianto took office in October, will have initial capital of at least 1,000 trillion rupiah (around $61 billion), according to Reuters. This was reportedly based on the estimated consolidated capital of Indonesia’s SOEs, which came to as much as 1,135 trillion rupiah in 2023.
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