The government of Indonesia has officially launched its new sovereign wealth fund, Daya Anagata Nusantara Indonesia (Danantara Indonesia), with a massive US$20 billion earmarked for its initial investment phase.
President Prabowo Subianto unveiled the fund, also known as Danantara Indonesia, at a formal ceremony.
According to a Reuters report, Danantara aims to boost Indonesia’s economic growth from approximately 5 per cent to 8 per cent through strategic investments.
Danantara Indonesia is designed to manage over US$900 billion in assets to stimulate development within Southeast Asia’s largest economy. It will operate independently from the Indonesia Investment Authority (INA), the country’s first sovereign wealth fund, which currently manages US$10.5 billion in assets with co-investors like the Dutch pension fund APG Asset Management and Abu Dhabi Investment Authority.
The fund will consist of two units: a holding company to oversee state-owned enterprises (SOEs) and an investment arm.
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A significant portion of Danantara’s initial investments will target technology and innovation. This includes:
Artificial intelligence development: Specific projects in AI are set to receive funding, signalling Indonesia’s ambition to become a key player in the AI landscape.
Metal processing: Investments in nickel, bauxite, and copper processing indicate a focus on leveraging Indonesia’s natural resources with advanced technologies.
Renewable energy: Renewable energy projects are included in the investment plan, highlighting a commitment to sustainable technology.
The fund will be led by Investment Minister Rosan Roeslani, formerly of Recapital Group, as Chief Executive. Pandu Sjahrir, from Indies Capital and AC Ventures, will head Danantara’s investment arm.
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