Jakarta. President Prabowo Subianto was joined by his two predecessors, Susilo Bambang Yudhoyono (SBY) and Joko “Jokowi” Widodo, as he launched Indonesia’s second sovereign wealth fund, Danantara, on Monday. Their presence at the State Palace in Jakarta signaled the government’s serious commitment to making Danantara a key solution for achieving self-reliance in state funding.

“Danantara Indonesia is launched for our children and grandchildren. It must be managed with the best of our efforts, with extra prudence and transparency. Every person must be able to audit Danantara because it belongs to future generations,” Prabowo said in his speech.

Development Tool
The law mandates Danantara to secure $20 billion in startup funding before managing $900 billion in assets and investments, primarily sourced from Indonesia’s largest state-owned enterprises (SOEs).

However, Prabowo underlined that Danantara is more than just an investment fund -- it is a strategic "development tool" that will reshape the management of Indonesia’s resources for maximum public benefit.

“Danantara will not only reinvest SOEs’ dividends into industries that support long-term development plans but also transform SOEs into global leaders in their respective sectors,” Prabowo said.

With projected assets reaching $900 billion, Danantara is set to become one of the world’s largest sovereign wealth funds, the president said.

In addition to SBY and Jokowi, the launch ceremony was attended by former vice presidents Boediono, Jusuf Kalla, and Ma’ruf Amin, as well as House Speaker Puan Maharani and dozens of foreign ambassadors.

The name Danantara is derived from Daya Anagata Nusantara, meaning “the future power of the archipelago.” While Prabowo initially planned to launch the fund in November, the process was delayed due to insufficient preparations.

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.

SOEs Forming Danantara’s Backbone
Seven major state-owned enterprises from banking, mining, energy, and telecommunications will serve as the financial backbone of Danantara:

• Banking: Bank Mandiri, Bank BRI, and Bank BNI
• Energy: Pertamina (oil and gas) and PLN (electricity)
• Telecommunications: Telkom Indonesia
• Mining: MIND ID, the state-owned mining holding company

These enterprises are among Indonesia’s largest, with vast assets and consumer reach, making them key contributors to the fund’s success.

During Jokowi’s administration, Indonesia established its first sovereign wealth fund, the Indonesia Investment Authority (INA). Reports suggest that INA may eventually be integrated into Danantara, further consolidating the government’s investment management strategy.