JAKARTA, RAKYAT NEWS – Indonesia’s newly launched sovereign wealth fund, Danantara, has assured the public that it will not use customer funds from state-owned banks for its operational capital.

Dony Oskaria, Head of Operations at Danantara, emphasized that the fund will rely on government capital injections and dividends from state-owned enterprises (BUMN) to finance its activities. This announcement came during the official launch ceremony at the Merdeka Palace in Jakarta on Monday, February 24, 2025.

Danantara, led by Rosan Roeslani, aims to consolidate assets from all BUMN entities to create globally competitive companies. Initially, the fund will oversee seven major state-owned enterprises, including PT Bank Mandiri, PT Bank Rakyat Indonesia, PT Bank Negara Indonesia, PT Telkom Indonesia, and PT Mineral Industri Indonesia (MIND ID). The consolidation process is expected to enhance the value of these assets and position them as global champions.

President Prabowo Subianto has set an ambitious target for Danantara’s first wave of investments, aiming to allocate approximately $20 billion (around Rp 325.56 trillion) into strategic sectors. These include mineral downstreaming projects for nickel, bauxite, and copper, as well as investments in data centers, artificial intelligence, oil refineries, petrochemical plants, food production, aquaculture, and renewable energy projects.

Pandu Patria Sjahrir, Head of Investment at Danantara, clarified that the $20 billion investment fund will be sourced entirely from Danantara’s internal cash reserves. These reserves are derived from initial government capital injections and annual dividends from BUMN entities. This approach ensures that the fund operates independently without relying on public or customer funds.

The establishment of Danantara marks a significant shift in Indonesia’s investment strategy, focusing on long-term growth and sustainability. By prioritizing strategic sectors, the fund aims to boost the country’s economic resilience and reduce dependency on raw material exports. The inclusion of renewable energy projects also aligns with Indonesia’s commitment to environmental sustainability.

Despite the optimistic outlook, some concerns have been raised about the fund’s governance and transparency. Critics have called for stringent oversight to ensure that Danantara’s operations remain accountable and free from mismanagement. In response, Danantara’s leadership has pledged to implement multi-layered supervision mechanisms to maintain public trust.

Danantara’s launch has garnered significant attention from both domestic and international stakeholders. The fund’s success could position Indonesia as a key player in global investment markets, attracting foreign investors and fostering economic growth. Rosan Roeslani, Danantara’s head, expressed confidence in the fund’s ability to deliver tangible results and create value for the nation.

As Danantara moves forward with its ambitious plans, the focus will be on effective implementation and achieving its investment targets. The fund’s ability to consolidate BUMN assets, attract additional funding, and drive strategic projects will determine its impact on Indonesia’s economy. With a clear vision and robust framework, Danantara has the potential to transform Indonesia’s economic landscape and set a new standard for sovereign wealth funds globally. (Uki Ruknuddin)

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