Indonesia to launch sovereign wealth fund with over US$900 billion in assets

Name: Indonesia swears in largest cabinet since the 1960s as locals voice hope for change
Uploaded: 2025-02-14T09:36:49.000Z
Duration: 2 min 13 s
Description: Indonesia swears in largest cabinet since the 1960s as locals voice hope for change

The fund will invest in sustainable high impact projects across sectors such as renewable energy, advanced manufacturing

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Indonesia’s President Prabowo Subianto said the sovereign fund will invest in sustainable high impact projects across sectors such as renewable energy, advanced manufacturing, downstream industries and food production. Photo: AFP

Reuters

Published: 5:36pm, 14 Feb 2025

Indonesia’s President Prabowo Subianto will launch a new sovereign wealth fund called Danantara Indonesia on February 24 with assets under management exceeding US$900 billion, according to a video statement shared by the government late on Thursday.

Prabowo said the fund will invest in sustainable high impact projects across sectors such as renewable energy, advanced manufacturing, downstream industries and food production.

“All these projects will contribute to achieving our committed target of 8 per cent economic growth,” Prabowo said, referring to the government’s goal to achieve annual economic growth of 8 per cent by 2029, compared to 5 per cent growth last year.

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Indonesia swears in largest cabinet since the 1960s as locals voice hope for change

He made the statement in a video at the World Governments Summit in Dubai. The statement on the expected launch came after the creation of Danantara Indonesia, modelled after Singapore’s investment arm Temasek, received parliament’s approval last week.

Danantara Indonesia will take over all government holdings in state companies, which include leading lenders Bank Mandiri, Bank Rakyat Indonesia, and Bank Negara Indonesia, from the Ministry of State-Owned Enterprises.

Prabowo also said the government has saved more than US$20 billion in its budget through efficiency measures, equivalent to about 10 per cent of Indonesia’s annual spending, and the savings will be used to finance more than 20 multibillion-dollar projects, such as investments in nickel, bauxite, copper and other critical minerals.