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February 24, 2025 | 11:04 am
TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto launches Daya Anagata Nusantara (Danantara) Investment Board this morning, Monday, February 24, 2025.
Danantara, a Sovereign Wealth Fund (SWF), has ambitious goals: to drive economic growth to 8 percent by 2029, and to focus on developing the renewable energy sector (40 percent), digital infrastructure (25 percent), and food security (15 percent).
Kiwoom Sekuritas analyst Oktavianus Audi emphasized that transparency and accountable governance will be key to the institution's success. He warned that without proper oversight, earning investors' trust could prove challenging for Danantara.
"Looking at other SWFs such as Temasek, they are overseen by parliament and audited by independent auditors. Meanwhile, Danantara is not under the supervision of the Supreme Audit Agency (BPK) and the Corruption Eradication Commission (KPK), raising concerns about its accountability," Audi said in his statement on Monday, February 24, 2025.
In addition, the independence in management is also questioned. The discourse that decision-making at Danantara will involve former presidents and religious organizations is considered risky to diminish market confidence.
"Investors tend to want SWFs that operate professionally and free from political intervention. If Danantara is not managed autonomously, the market could react negatively," he said.
Danantara's success not only depends on the size of its capital or the projects it undertakes, but also on how the institution builds its credibility in the eyes of global investors. Without clear transparency and strong oversight, Danantara risks losing momentum and the trust that is the key to the success of SWFs in various countries.
Meanwhile, Economist from Paramadina University, Wijayanto Samirin, said that the implementation of good corporate governance is the only way to anticipate a bad business ecosystem and avoid misuse of Danantara. The mechanism of good corporate governance must be carried out externally and internally.
Externally, he explained, it is built by prioritizing transparency, including in the selection of key figures, the drafting of regulations, and strategic decision-making.
"Let the people, media, and civil society participate in oversight. 'Rats' like darkness, so create light," said Wija in a short message on Monday, February 24, 2025.
Meanwhile, the internal mechanism is built by strengthening the role of supervisors, commissioners, audit committees, and internal audits. Wija argued that the government needs to fill these positions with professional, integrity, and non-political figures.
He added that they must be regarded as equal partners, not merely as complements. The meritocracy system—offering leadership opportunities based on ability and performance—should be implemented when selecting the best individuals to lead Danantara.
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