Jakarta. Former President Joko “Jokowi” Widodo has welcomed the establishment of the Investment Management Agency Daya Anagata Nusantara (Danantara), calling it a strategic move to optimize state-owned enterprise (SOE) assets for national development.

Danantara is set to manage more than $900 billion (Rp 14,724 trillion) in total assets, positioning it among the world’s largest sovereign wealth funds. In its initial phase, the fund will oversee $20 billion (Rp 325.8 trillion), channeling investments into key projects, including mineral processing and sustainable sectors.

“The initiative to form Danantara is commendable. Consolidating SOE assets will make them more productive and beneficial for development while maintaining business viability,” Jokowi said in Solo on Wednesday.

Jokowi, who attended Danantara's launch on Monday alongside former President Susilo Bambang Yudhoyono, said the fund's success would depend on professional management by experienced and skilled individuals.

“If these assets are consolidated and managed effectively, the benefits for the people will be significantly greater,” he added.

Jokowi cited successful sovereign wealth funds in Abu Dhabi Investment Authority (ADIA), Singapore's Temasek, and Malaysia's 1MDB as examples but stressed that strong leadership is crucial.

“The most important factor is ensuring that Danantara is managed by professionals with extensive experience and a solid track record in investment,” he said.

Jokowi also underscored the need for transparency and professionalism in the fund’s operations.

Leadership and Oversight

President Prabowo Subianto has appointed a team of seasoned business figures to lead Danantara. Rosan Roeslani, founder of Recapital Advisors and Indonesia’s investment minister, will serve as Chief Executive Officer (CEO). Pandu Sjahrir, an investor specializing in energy and technology, has been named Chief Investment Officer (CIO), while Dony Oskaria, Deputy Minister of State-Owned Enterprises (SOEs), will take on the role of Chief Operating Officer (COO).

The leadership team will work under the supervision of SOE Minister Erick Thohir, who chairs Danantara’s supervisory board, with vice chairman Muliaman Hadad.

CEO Rosan Roeslani assured that Danantara would be subject to strict oversight by the Supreme Audit Agency (BPK) and the Corruption Eradication Commission (KPK) while also reporting directly to President Prabowo.

To avoid conflicts of interest, Pandu Sjahrir has stepped down as Deputy President Director of mining company TBS Energi Utama (TOBA) following his appointment as Danantara’s CIO.