Indonesia Establishes Danantara to Manage State Assets for Economic Growth
Indonesia's parliament has passed an amendment to the state-owned enterprises law, creating a new entity, Daya Anagata Nusantara (Danantara), to manage billions of dollars in state assets. Danantara will consolidate state firms, oversee investments, and distribute dividends.
The agency, reporting directly to the president, will aim to boost economic growth to 8% during President Prabowo Subianto's term. It will be established with an initial capital of approximately $61 billion, derived from cash, state assets, or government shares.
Danantara will be instrumental in funding Prabowo's strategic projects, including education, housing, and energy independence. It will provide an innovative mechanism for mobilizing resources without straining the state budget.
Although specific state-owned enterprises to be transferred to Danantara have not been disclosed, previous reports indicate that major companies such as Bank Mandiri, Mining Industry Indonesia, and Pertamina may be included.
The establishment of Danantara is a significant step in Indonesia's efforts to enhance its economic growth and competitiveness.