Indonesia's Sovereign Wealth Fund to Launch on Feb. 24

Indonesian President Prabowo Subianto has announced the launch of the nation's new sovereign wealth fund, Danantara, on February 24th.

Massive AUM Target

An initial assessment indicates the fund will amass over $900 billion in assets under management (AUM), surpassing earlier estimates. Danantara will invest in various industries, including renewable energy, manufacturing, and agriculture.

Strategic Investments for Economic Growth

The fund aims to allocate state assets and natural resources into impactful projects that align with President Prabowo's economic growth target of 8%. Specific investment details have not been disclosed, but Danantara is expected to play a pivotal role in diversifying Indonesia's economy and attracting foreign investment.

Eyes on State Assets

Danantara's creation follows amendments to the state-owned enterprises law, allowing the fund to oversee state-owned companies and their assets. Initial funding is expected to include cash, state assets, and government-owned shares worth around $60 billion.

Governance and Oversight

Danantara will report directly to the president and be supervised by a board. A regulatory framework is expected soon to establish clear guidelines for its operations. The fund is currently led by former Bank Indonesia deputy governor Muliaman Hadad.