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February 24, 2025 | 11:09 am
TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto just launched the Advisory Board and management of the Investment Management Agency of Nusantara (BPI Danantara) this morning, Monday, February 24, 2025. The launch of Danantara took place at 10:00 WIB (Indonesia Western Time) at the Central Courtyard of the Presidential Palace in Jakarta.
So, what is the actual purpose and function of the formation of Danantara? Here's the complete information.
Danantara was formed as a commitment by Prabowo to optimize state investment management. This formation is stated in the Third Amendment Draft Law to Law Number 19 of 2003 concerning State-Owned Enterprises (SOEs).
The bill was ratified in the Plenary Session of the Indonesian House of Representatives (DPR RI) for the 12th Session of the 2nd Session of 2024/2025 which took place at the Nusantara II Building, Senayan, Jakarta, on Tuesday, February 4, 2025.
Danantara works by collecting SOEs' assets to find the money. These assets will be pledged as loan collateral or even sold.
However, Danantara has a different role and function from the Ministry of State-Owned Enterprises. This new institution is responsible for investment management outside the State Revenue and Expenditure Budget (APBN).
At the World Governments Summit 2025, Prabowo stated that Danantara, a sovereign wealth fund or government investment fund, will invest funds in sustainable projects.
He hopes these strategic projects can contribute to achieving Indonesia's economic growth target of 8 percent over the next five years."Danantara, which will be launched on the 24th of this month, will invest our natural resources and state assets in sustainable and high-impact projects in various sectors, such as advanced manufacturing, food production, renewable energy, downstream industry, and others," said Prabowo virtually in Dubai, United Arab Emirates (UAE), on Friday, February 14, 2025.
The President stated that Danantara is planning to manage assets of more than US$900 billion in the form of assets under management (AUM). Meanwhile, the initial funding is targeted to reach US$20 billion.
Three figures with backgrounds in the business world, namely Rosan Roeslani, Pandu Sjahrir, and Dony Oskaria, allegedly will lead the agency managing these SOEs.
Rosan Roeslani, who currently serves as Minister of Investment and Downstreaming, is said to be appointed as the chief executive officer (CEO) of Danantara. Pandu Satria Sjahrir, a businessman and nephew of the National Economic Council Chairman Luhut Binsar Panjaitan, allegedly become the chief investment officer (CIO). Meanwhile, Dony Oskaria, who serves as Deputy Minister of State-Owned Enterprises, is said to be a candidate for Danantara chief operating officer (COO).
Melynda Dwi Puspita, Ervana Trikarina Putri, Linda Lestari, and Sultan Abdurrahman contributed to the writing of this article.
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