Jakarta. Danantara's chief executive officer Rosan Roeslani recently said that the sovereign fund would only pick investment-ready projects, saying that it would take into account the labor and land availability before actually pouring some money.

Indonesia made international headlines for launching its second sovereign wealth fund Danantara just a few weeks ago. The fund will consolidate assets of seven major state-owned enterprises, including lenders Mandiri and BNI, before having all government-run businesses under its wings by the end of this month.

It will start with $20 billion in initial investment cash for the fund to invest in strategic projects such as nickel processing and oil refinery. To date, the nascent Danantara has yet to actually make an investment as the fund's investment committee wants to make sure if they are feasible. This way, it can reduce possible investment risk.

"We will make some independent assessments, and take into account all aspects such as the return, and import reduction, especially for projects related to energy, and job creation. We are currently making all these calculations. At Danantara, everything must be ready ... including the permits and land availability," Rosan told reporters at the presidential palace in Jakarta on Monday evening.

"Once our investment committee states that [the projects] are worth investing, we will immediately proceed," Rosan said.

He revealed that Danantara would consider the project's sustainability as the fund sought to make sure what it invests in can help Indonesia reach net zero emission by 2060. The relevant ministries will also be responsible for making sure that the projects are investment-ready.

The investment minister echoed his statement that Danantara would welcome investors both from home and abroad to partner with the fund. He, however, did not say if any foreign investor was already close to signing a deal with Danantara at the moment.

Even so, senior presidential economic advisor Luhut Binsar Pandjaitan not long ago claimed that an unnamed Emirati investor was mulling partnering with Danantara for a 10-gigawatt renewable energy project via a joint venture scheme. Senior minister Airlangga Hartarto, who recently returned from Paris, said that French mining giant Eramet sought investment opportunities in the downstream industry development with Danantara.

The initial phase will see seven state-owned businesses -- banks Mandiri, BRI, BNI; telecommunications company Telkom; electricity provider PLN; oil and gas firm Pertamina; mining holding MIND ID -- brought under Danantara's management. Danantara is planning to integrate the remaining state-owned businesses by the end of this month.

Danantara's assets under management are expected to top $900 billion once it has all government-run businesses, possibly making it among the world's largest sovereign wealth funds. During former President Joko "Jokowi" Widodo's second term, the country already founded the country's first fund Indonesia Investment Authority (INA). Rosan has previously denied reports of INA eventually being under Danantara.

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