President Prabowo Subianto announced that the first wave of investments, amounting to USD 20 billion or approximately IDR 325 trillion, will be allocated to around 20 strategic projects. This initiative coincides with the launch of the Daya Anagata Nusantara Investment Management Agency, or BPI Danantara. 

In these strategic projects, Prabowo stated that the focus will be on nickel, bauxite, and copper downstream industries, data center development, artificial intelligence, oil refineries, petrochemical plants, food and protein production, aquaculture, and renewable energy. 

"These are the sectors that will determine our future, our resilience, and our national independence," said President Prabowo on Monday, February 24. 

He mentioned that the establishment of Danantara Indonesia marks a new era for state-owned enterprises (SOEs), which will not only act as business entities but also serve as national assets driving development and growth. 

Prabowo expressed that SOEs must operate with high standards, the best governance, and a commitment to innovation, big ideas, transparency, technological advancement, discipline, and responsible management. 

Prabowo highlighted that Danantara is a strategic and efficient solution to optimize SOEs. He noted that it will not only invest SOE dividends into industries that drive long-term growth but will also transform Indonesian SOEs into world-class players in their respective sectors. 

Projected to Become One of the World’s Largest SWFs 

Regarding the launch plan, the Financial Times Stock Exchange Russell (FTSE Russell) stated that BPI Danantara has the potential to surpass the Government of Singapore Investment Corporation (GIC). This could happen if Danantara develops rapidly during its implementation. GIC is one of Singapore's three main investment entities managing sovereign wealth and foreign exchange reserves, established in 1981. 

The other two investment entities are Temasek Holdings (Private) Limited and the Monetary Authority of Singapore (MAS). FTSE Russell Policy Director Wanming Du stated that if the estimated funds prepared for Danantara materialize, the new agency is projected to rank seventh globally, with assets under management (AUM) of USD 900 billion. 

However, Wanming Du emphasized that they are still awaiting concrete details regarding the structure and assets to be managed. He also noted that Danantara's presence is expected to have a positive impact on Indonesia's investment market. Previously, Prabowo stated that Danantara would manage approximately USD 900 billion or around IDR 14,616 trillion in assets under management (AUM). 

"With assets under management estimated to reach around USD 900 billion, Danantara has the potential to become one of the largest sovereign wealth funds in the world, even surpassing Singapore's GIC," said Wanming Du at the Bloomberg Technoz Economic Outlook 2025 event in Jakarta on Thursday, February 20. 

This article is published in partnership with Katadata 

Original article here