February 20, 2025 | 09:15 am
TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto stated that the launch of the National Strategic Investment Fund (NSIF) will be carried out on Monday, February 24 next. He referred to Danantara as a force that will support Indonesia's economy in the future.
"Danantara is the consolidation of all our economic power, which is in the management of SOEs (State-Owned Enterprises) and will be managed and named Danantara, National Strategic Investment Fund," said Prabowo in a press conference at Merdeka Palace, Jakarta, Monday, February 17, 2025, as quoted from Antara. So, what are some interesting facts about Danantara?
1. Legal Basis
The establishment of Danantara is stipulated in the Third Amendment to Law Number 19 of 2003 concerning SOEs or the SOE Law. The approval of the bill was carried out in the Plenary Session of the Indonesian House of Representatives for the 12th Session of the 2nd Session of 2024/2025 in Nusantara II Building, Senayan, Jakarta, Tuesday, February 4, 2025.
2. Meaning of the Name
Regarding the meaning of Danantara, the President explained that 'daya' means energy or power, while 'anagata' refers to the future. Thus, the meaning of Danantara is the energy or power for the Indonesian homeland's future.
3. Origins
Danantara as a superholding of SOEs has often been mentioned in the campaign of Prabowo Subianto and Gibran Rakabuming Raka. There was even discourse on changing the Ministry of SOEs into a state revenue agency as institutional transformation.
"Because it turns out our SOEs are gathered, the amount is 1 trillion US dollars, around 60 percent of our GDP. But, their contribution perhaps needs to be fixed now, needs to be increased, so there must be institutional, business, cultural, and management transformation," said the Advisor Council of the National Campaign Team (TKN) of Prabowo-Gibran, Burhanuddin Abdullah, in the UOB Economic Outlook 2025 event, Wednesday, September 25, 2024.
4. Purpose
On a different occasion, the President stated that Danantara as a sovereign wealth fund (SWF) or government investment fund would invest in sustainable projects. He also hopes that these strategic projects can contribute to achieving Indonesia's 8 percent economic growth target for the next five years.
5. Amount of Managed Capital
The President explained that Danantara is projected to manage more than US$ 900 billion in assets or asset under management (AUM). The initial funding is targeted at US$ 20 billion.
"The initial funding this year will reach 20 billion US dollars. I think this will be a transformative step. We plan to start around 15 to 20 billion US dollar projects, which will be a significant added value for our country," said Prabowo.
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