Jakarta. Luhut Binsar Pandjaitan, Chairman of Indonesia’s National Economic Council (DEN), has addressed growing concerns following a viral call on social media to withdraw savings from state-owned banks, in the wake of the government’s announcement regarding the Danantara Investment Management Agency (BPI Danantara).

The social media call gained significant traction after the launch of Danantara, which is set to be formally established on February 24. The initiative has stirred fears of potential financial mismanagement and defaults, despite the solid financial standing of state-owned banks such as BRI, Bank Mandiri, and BNI.

Luhut, however, sought to reassure the public, describing the creation of Danantara as a strategic government initiative. He said the agency’s open structure allows for joint ventures between companies, which enhances both efficiency and transparency.

“Joint ventures make the companies under Danantara more efficient and transparent,” Luhut said on the sidelines of the Indonesia Economic Summit (IES) 2025 in Jakarta, urging the public not to be concerned about potential risks.

Danantara, Indonesia’s new sovereign wealth fund, aims to provide financing for large-scale national projects, reducing the country’s reliance on state budgets and international lenders. According to Andre Rosiade, an executive from President Prabowo Subianto’s Great Indonesia Movement Party (Gerindra), Danantara will finance 35 strategic projects in 2025, with an estimated budget of $20 billion. Of that, $4 billion is earmarked for the industrialization of minerals and other mining products.

Danantara, short for Daya Anagata Nusantara (meaning “the future power of the archipelago”), will consolidate the management of Indonesia’s largest state-owned enterprises (SOEs), including Bank Mandiri, BRI, and BNI from the banking sector, as well as Pertamina (energy), PLN (electricity), Telkom Indonesia (telecommunications), and MIND ID (mining). These enterprises, collectively some of Indonesia’s largest by asset value and consumer reach, will form the core of Danantara’s investment portfolio.

Pandu Sjahrir, the founding partner of venture capital firm AC Ventures and nephew of Luhut Binsar Pandjaitan, is expected to join the leadership team of Danantara, according to reports.