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February 20, 2025 | 10:09 pm
TEMPO.CO, Jakarta - Luhut Binsar Pandjaitan, chairperson of the National Economic Council (DEN), believed that Indonesia's Sovereign Wealth Fund, Danantara, has the potential to generate profits of up to US$25 billion, or approximately Rp408.5 trillion at an exchange rate of Rp16,340.
Luhut claimed that Danantara is a strategic initiative by President Prabowo Subianto. "Looking at Danantara, with its assets of US$900 billion, if we assume we can manage just US$200 billion, that's incredibly significant," he stated at the Economic Outlook 2025 event held in the SCBD area, South Jakarta, on Thursday, February 20, 2025. "From a profit perspective, we can easily generate funds, around US$20-25 billion, allowing us to invest independently."
Furthermore, Luhut revealed that the United Arab Emirates (UAE) is ready to invest US$10 billion, or Rp163.4 trillion, in Danantara, specifically for the development of new renewable energy (NRE) sectors. He clarified that this investment will be structured through a joint venture arrangement.
He recalled a meeting with UAE Minister of Energy and Infrastructure Suhail Mohamed Al Mazrouei ten days earlier at his office. He explained to Suhail that Indonesia is developing NRE-based power plants with a total capacity of 72 gigawatts. "And he said, 'Okay, with a joint venture, we can combine 10 gigawatts,' 10 gigawatts is US$10 billion," Luhut explained.
"So you can imagine, there are so many opportunities at the moment," remarked the former Coordinating Minister for Maritime Affairs and Investment during the administration of the 7th President, Joko Widodo.
Luhut further emphasized the commitment to professional management of investment funds within Danantara. He stressed that Danantara will not be managed by "proxy individuals".
"It will not be managed by, perhaps, proxy individuals, recommended by this or that," he asserted. "That will not happen, because this will be run by professional companies from both sides."
As previously reported, President Prabowo previously announced the scheduled launch of the Danantara Investment Management Authority on Monday, February 24, 2025. Danantara will become a super-holding company and serve as the Indonesian government's investment vehicle.
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