Jakarta. President Prabowo Subianto on Wednesday set a target for Indonesia’s sovereign wealth fund, Danantara, to contribute at least $50 billion annually to the state.

The figure is based on an estimated minimum return on assets (ROA) of 5% from the roughly $900 billion in state assets managed by the fund, which is just one year old.

Prabowo said a healthy company should ideally generate an ROA of at least 10% annually, but the target for Danantara is set lower for now given its early stage of development.

“We understand that in the first years we may not achieve the higher targets. If we only require a 5% return on assets, that means Danantara must return $50 billion to the state each year,” Prabowo said during a speech marking the fund’s first anniversary in Jakarta.

The president added that Danantara must establish long-term targets for managing state assets and eventually aim for an annual ROA of between 10% and 15%.

Prabowo also praised the fund’s performance in its first year but warned that significant challenges remain ahead.

“The target is still far away, but you must at least deliver a 5% return to the state, equivalent to $50 billion,” he said.

During the event, Prabowo also issued a stern warning to government officials not to submit reports that misrepresent facts simply to please him.

“Do not play games with me by providing false reports just to make me happy. I give this as a serious warning,” he said.

Danantara has been tasked with managing the assets of Indonesia’s state-owned enterprises, which are valued at about $900 billion, and investing them in projects that support national development.

Prabowo said he was recently informed that the country has more than 1,000 state-owned enterprise entities, underscoring the need for a more integrated asset management system.

He also described Danantara as one of the largest sovereign wealth funds in the world.

“We are grateful that Indonesia now has a sovereign wealth fund, perhaps the sixth or seventh largest globally,” Prabowo said.

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