Danantara Opens Opportunities for Private Sector in Infrastructure Development, Says Public Works Minister

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February 25, 2025 | 07:33 pm

TEMPO.CO, Jakarta - Minister of Public Works Dody Hanggodo expressed optimism regarding the Daya Anagata Nusantara Investment Management Agency (BPI Danantara) inaugurated by President Prabowo Subianto on Monday. He hopes that Danantara will strengthen state asset management and accelerate strategic infrastructure development to enhance national economic competitiveness.

"The presence of Danantara opens up broader opportunities for the private sector to participate in national infrastructure development," said Dody Hanggodo in an official statement on Tuesday, February 25, 2025.

According to Dody, collaboration between the government, private sector, and Danantara will be the key to creating better connectivity, starting from accelerating development equality to enhancing Indonesia's competitiveness at the global level. With Danantara, he said, the infrastructure financing scheme will not solely rely on long-term investments from various parties.

"We want to create a sustainable financing system so that infrastructure development is not hindered by budget constraints," said Dody Hanggodo. "With a more flexible model, we can ensure that strategic projects continue to run and provide extensive benefits to the people."

For 2025, the Ministry of Public Works budget is set at Rp50.48 trillion. Previously, the initial budget of the Ministry of Public Works was Rp110.95 trillion but was cut following the issuance of Presidential Instruction Number 1 of 2025.

After the budget cut, President Prabowo Subianto launched Danantara at the Jakarta State Palace on Monday, February 24, 2025. Prabowo appointed the Minister of Investation and Industrial Affairs/Investment Coordinating Board (BKPM) Rosan Roeslani as the Head of the Implementing Agency (Chief Executive Officer/CEO) of Danantara.

Prabowo stated that he would allocate the state's savings amounting to US$20 billion or around Rp300 trillion to Danantara for dozens of national strategic projects. Prabowo also stated that Danantara is not just an investment fund management institution, but also a national development instrument or tool.

"Make no mistake, what we are launching today is not just an investment fund, but a national development instrument that must be able to change the way the nation's wealth is managed for the welfare of all the Indonesian people," said Prabowo.

Ervana Trikarinaputri contributed to the writing of this article.

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