Indonesia's newly launched sovereign wealth fund, Danantara Indonesia, has assembled a high-profile advisory team, including former presidents Joko Widodo and Susilo Bambang Yudhoyono, as well as prominent global figures like hedge fund manager Ray Dalio, economist Jeffrey Sachs, and former Thai prime minister Thaksin Shinawatra.
This fund, a key initiative of President Prabowo Subianto, aims to drive Indonesia’s economic growth to 8% by 2029 by managing state-owned enterprise shares and reinvesting dividends into strategic commercial projects, with a vision similar to Singapore’s Temasek.
However, its formation has sparked concerns among investors about potential political interference, contributing to a recent market selloff that saw Indonesian stocks plunge to their lowest levels since 2021, despite reassurances from officials that the fund remains transparent and open to audits.
To gain market confidence, Danantara has appointed financial sector veterans from institutions like Bank Mandiri, HSBC, and Indonesia’s central bank, with its first $20 billion investment focusing on critical sectors such as natural resource processing, AI, and food and energy security.
