With a total asset of more than US$900 bil under management, Danantara Indonesia will be one of the world’s largest sovereign wealth fund.
Image: Presidential Press Bureau. Former president Susilo Bambang Yudhoyono (left), President Prabowo Subianto (center) and former president Joko “Jokowi” Widodo
Daya Anagata Nusantara, also called Danantara Indonesia (Danantara, ‘energy for future’) was launched on February 24, 2025. The fund is modelled on Singapore’s very successful Temasek Holdings.
When Indonesian President Prabowo took office in late October 2024, he set a goal of achieving 8 percent annual economic growth, though the current rate stands at approximately 5 percent. He stated that Indonesia is ready to partner with everyone, including international collaborators, to make Danantara a success and generate new job opportunities.
“Indonesia is sending a clear message to the world that we are open to collaboration, business, investment, and shared prosperity,” he said. “Danantara Indonesia will help us expand global cooperation, and I hope all international partners will see Indonesia not only as an emerging economy but also as a cornerstone of regional stability and collective progress.”
For many observers, Danantara potentially reproduces Indonesia’s predatory political economy. On this view, SOEs embody rising economic nationalism, that is state capitalism, and crowd out capital formation by private firms.
The president further emphasized Indonesia’s ambition to become a developed nation, noting that the creation of Danantara is a significant step toward that goal. “In our first 100 days, we have demonstrated our commitment to managing Indonesia’s wealth with strict financial discipline and responsible governance,” he added.
Concerns regarding transparency have emerged, particularly about how Danantara, led by Investment and Downstreaming Minister Rosan Roeslani—who also headed Prabowo’s presidential campaign—will be audited. State-owned Enterprises Minister Erick Thohir, also a key member of Prabowo’s campaign team, serves as the chairman of the fund’s supervisory board.
Before Danantara’s official launch, some experts raised alarms about transparency due to uncertainties over the fund’s auditing process. Analysts noted that the country’s Audit Board (BPK) and the Financial and Development Supervisory Agency (BPKP) could only audit Danantara with Parliament’s approval, which is controlled by Prabowo’s coalition, the Advance Indonesia Coalition. This change followed an amendment to the state-owned enterprises law on February 4.
“Previously, the BPK could audit financial reports of state-owned enterprises using various methods, but now, it can only perform audits with a specific focus on identifying state losses,” explained Yassar Aulia, a researcher from Indonesia Corruption Watch (ICW). “Audits now require Parliament’s approval or a formal request.”
However, Rosan dismissed these concerns at a press conference following Danantara’s launch. He emphasized that “no one is above the law in this country” and reassured that the Corruption Eradication Commission (KPK) could conduct audits, especially in cases of misconduct or criminal activity. He also mentioned that the BPK could perform audits, though it would require a specific process.
When asked about whether Parliament’s approval is necessary for Danantara’s audits, Rosan confirmed that the KPK could audit the fund at any time. However, he noted that the BPK would need to follow a set procedure for auditing Danantara, without providing further details.
In addition to concerns about transparency, there are also questions about the potential success of Danantara, although Prabowo acknowledges that such doubts are understandable.
