Jakarta. The newly launched sovereign wealth fund Danantara will provide significant impetus for Indonesia's economic growth in the future, a senior lawmaker said on Monday.

"This is a historic moment for the nation. With Danantara, I believe prosperity, resilience, and economic independence can be realized. Danantara can also be considered an important stepping stone in realizing the vision of Golden Indonesia 2045," said Adies Kadir, deputy speaker of the House of Representatives.

Adies added that Danantara is expected to improve the effectiveness and efficiency of state-owned enterprises (SOEs). Moreover, Adies is confident that Danantara can help the Indonesian government achieve its ambitious economic growth targets.

"With managed funds amounting to Rp 14,715 trillion, I am confident that the 8 percent economic growth target set by the government is not an impossible goal to achieve," he said.

According to him, Danantara also reflects a more progressive and modern transformation in the management of strategic investments. The presence of Danantara will provide a positive boost for investment growth, which needs to be optimally supported in order to have a real impact on the welfare of the people.

“The House gives full appreciation for this initiative and supports the existence of Danantara," he concluded.

The name Danantara is derived from Daya Anagata Nusantara, meaning “the future power of the archipelago.” The primary role of Danantara will be to consolidate the management of SOEs, oversee their dividends and investments, and ensure efficient financial governance.

Danantara was established following the third amendment to the 2003 Law on State-Owned Enterprises, which allows it to assume certain SOE management functions.