Getting to Know Danantara, 5 Interesting Facts about the Latest Investment Institution in Indonesia!

Kapanlagi.com - President Prabowo Subianto has just launched Danantara, the Investment Management Agency of Daya Anagata Nusantara, on February 24, 2025. This institution is ready to manage fantastic assets, more than US$ 900 billion or approximately Rp 14.615 trillion (with an exchange rate of Rp 16,238 per US dollar).

Danantara comes with a noble mission: to invest natural resources and state assets into sustainable projects that have a positive impact across various sectors, including renewable energy, manufacturing, and food production.

The importance of understanding Danantara cannot be underestimated, especially for the Indonesian public, economic actors, and investors. This institution has great potential to shape the future of the national economy. Therefore, both domestic and international investors need to recognize the role and impact of Danantara in the investment market.

The government and related institutions are also required to have a good understanding so that the management of state assets can be carried out transparently and accountably. The general public also needs to receive clear information about Danantara, as the management of this national wealth will directly affect the welfare of the people.

The presence of Danantara is expected to strengthen synergies among State-Owned Enterprises (BUMN) and improve efficiency in the management of state assets. Thus, understanding Danantara and its performance becomes crucial for the future of the Indonesian economy.

For more complete information, see the following review from Kapanlagi.com, Tuesday (18/2/2025).

1. Launch and Managed Assets

President Prabowo Subianto enthusiastically announced the launch of Danantara scheduled for February 24, 2025, a monumental step that will manage assets of over US$ 900 billion!

In his statement, Prabowo emphasized that Danantara will invest natural resources and state assets into sustainable projects that have a significant impact in vital sectors such as renewable energy, advanced manufacturing, and food production.

With the management of seven giant SOEs like Bank Mandiri, Pertamina, and PLN, Danantara is ready to become a new pillar of the Indonesian economy.

"We are committed to developing new wealth for Indonesia," asserted Prabowo in his virtual address at the World Governments Summit.

This grand ambition demonstrates how serious the government is in promoting sustainable economic growth, where transparency and accountability will be the keys to Danantara's success.

2. Philosophy of Name and Purpose

In a press conference held at the State Palace in Jakarta on Monday (17/2/2025), President Prabowo introduced the name Danantara, an abbreviation of Daya Anagata Nusantara, which carries a profound meaning: "Daya" symbolizes strength, "Anagata" reflects the future, and "Nusantara" represents the homeland of Indonesia.

This name is not just an identity, but a great hope for Danantara to become the driving force of a brighter Indonesian economy.

With a focus on more effective and efficient management of state investments, Danantara will venture into various strategic sectors such as renewable energy, advanced manufacturing, and downstream industries, in order to stimulate economic growth and create jobs.

"Danantara is an economic strength and an investment fund that will drive the future of Indonesia, managed for our children and grandchildren," emphasized Prabowo, underscoring the commitment to building a modern, sustainable, and inclusive economy, while reducing dependence on traditional sectors.

3. Role and Function

Danantara is now ready to carve history as a super holding of state-owned enterprises (BUMN) and a government investment vehicle, thanks to the birth of a new law on BUMN that was enacted on February 5, 2025.

Unlike the Ministry of BUMN, which acts as a regulator, Danantara will function as an executor managing BUMN dividends to be allocated into more strategic investments.

With this step, the management of state finances becomes more efficient and directed, replacing the old mechanism that funneled dividends to the Ministry of Finance and the state budget (APBN).

This transformation is not just a change, but also reflects the complexity and scale of Danantara's tasks that demand solid coordination among various ministries.

The key to Danantara's success lies in transparency and accountability, which will ensure that every step taken brings maximum benefits to the state and society.

4. Supervision and Accountability

President Prabowo Subianto emphasized how crucial it is to supervise Danantara, inviting former presidents and leaders of religious organizations to jointly oversee the management of these funds.

"We must safeguard this together, so I hope all previous presidents are willing to be supervisors," Prabowo stated, while suggesting that the leaders of NU, Muhammadiyah, and KWI also take part in the supervision.

With the new law on SOEs granting the President the authority to establish the Danantara Supervisory Board, the government demonstrates its commitment to ensuring that fund management is conducted transparently and accountably.

The existence of an independent and credible supervisory board is essential to maintain integrity and public trust.

Strict supervision and high accountability are key to the success of Danantara, ensuring that the managed funds are used effectively for the interests of the state and the people of Indonesia, while also enhancing investor confidence, both domestically and internationally.

5. Economic Impact and Hope

Danantara is expected to be the driving force behind Indonesia's economic growth by managing assets worth US$ 900 billion that have extraordinary potential to fund vital projects such as infrastructure, renewable energy, and other strategic industries.

With careful investment strategies and the ability to attract foreign investors, Danantara can create jobs and encourage sustainable economic growth.

To achieve success, it is important for the government to ensure that Danantara is managed professionally and transparently, thereby building trust among investors.

This success not only has the potential to change the face of Indonesia's economy but also serves as an example of efficient and sustainable state asset management, leaving a valuable legacy for future generations.

(kpl/rao)