Davos, Switzerland. Indonesia’s sovereign wealth fund Danantara has set an ambitious goal to triple the value of assets under its management to about $2.7 trillion by 2030, banking on a sweeping consolidation and transformation of the country’s sprawling state-owned enterprise sector to drive long-term value creation.

Speaking on a panel at the World Economic Forum (WEF) annual meeting in Davos, Mohamad Al-Arief, managing director for global relations and governance at Danantara Indonesia, said the fund currently manages assets worth roughly $900 billion. 

“In the coming years, we need to grow assets through value creation and other measures, and gradually reach our objective of tripling the current level by 2030,” Al-Arief said on Tuesday, according to a livestream carried by Indonesia’s Ministry of Investment and Downstream Industries.

A key pillar of that strategy is the consolidation of Indonesia’s state-owned enterprises. Danantara plans to reduce around 1,068 state firms to about 221 professionally managed entities within three to four years. At present, the portfolio is overseen through roughly 50 sector-based holdings, a structure the fund sees as inefficient and dilutive to competitiveness.

“Within three to four years, those 1,068 companies could be transformed into just over 200 state-owned enterprises managed on a professional basis, making them more competitive over the long term,” Al-Arief said.

He added that the process is aimed at improving efficiency, governance and global competitiveness, adding that two companies in Danantara’s portfolio — energy giants Pertamina and PLN — already rank among the Fortune 500.

The consolidation effort has entered what Al-Arief described as a “fundamental business review” phase across business lines, to be followed by mergers and streamlining. The end goal, he said, is a smaller group of stronger companies capable of delivering higher value and competing internationally.

Indonesia’s presence at the WEF meeting from Jan. 19–22 forms part of the government’s broader economic diplomacy push, Investment and Downstream Industries Minister Rosan Roeslani said earlier. The delegation includes officials from the ministry, Danantara and the Indonesian Chamber of Commerce and Industry (Kadin), as Jakarta seeks to attract capital and partnerships amid intensifying global competition.

Danantara has recently outlined a $6 billion pipeline of priority strategic projects scheduled to begin rolling out from February 2026. The investments span downstream industries including bauxite and aluminum processing, sustainable aviation fuel — known locally as bioavtur — oil refining and poultry farming, areas the fund sees as critical to boosting domestic value creation and economic growth.

Beyond domestic industry, Danantara has expanded overseas, including the recent acquisition of hotel and real estate assets in Makkah’s Thakher City near the Grand Mosque. The deal, secured through a competitive bidding process, supports Indonesia’s long-term plan to improve accommodation and services for millions of Hajj and Umrah pilgrims each year.

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