Indonesian President Prabowo Subianto has officially signed a Presidential Decree establishing the Daya Anagata Nusantara Investment Management Agency (Danantara). The signing took place at the Presidential Palace in Jakarta on Monday, February 24, 2025.
The Danantara Investment Management Agency was created following the revision of the State-Owned Enterprises (SOE) Law, approved by the Indonesian Parliament (DPR). Danantara will serve as a capital management body, channeling SOE investments into sustainable and high-impact projects that benefit the public.
President Prabowo also signed a Presidential Decree appointing the Supervisory Board and Executive Body of Danantara, accompanied by several ministers.
“Presidential Decree No. 30 of 2025 on the Appointment of the Supervisory Board and Executive Body of the Daya Anagata Nusantara Investment Management Agency (Danantara) Indonesia,” Prabowo stated, as quoted by detik.com.
Structure of Danantara: Supervisory Board and Executive Body
According to the revised SOE Law, Danantara consists of two main components:
1. Supervisory Board – Responsible for overseeing the agency’s operational activities.
2. Executive Body – Manages and executes Danantara’s investment strategies.
A key addition to the legislation states that Danantara will receive funding from state capital injections and other sources. These state capital injections may come in the form of cash, state-owned assets, or government shareholdings in SOEs.
Danantara Launched: Aiming for a $900 Billion Investment Fund
Danantara’s initial capital is set at a minimum of USD 61.47 billion, with the possibility of further increases through additional state capital injections or external funding sources.
Prabowo previously announced that Danantara is expected to become Indonesia’s largest investment management entity, handling assets worth USD 900 billion. The initial funding is projected at USD 20 billion, and the agency will operate similarly to Temasek Holdings in Singapore.
“This year’s initial funding will reach USD 20 billion. I believe this will be a transformative step. We plan to launch around 15 to 20 billion-dollar projects, which will significantly add value to our country,” Prabowo stated, as quoted by tempo.co.
Prabowo emphasized that Danantara’s funds will be allocated to strategic projects across multiple sectors, supporting Indonesia’s economic growth target of 8% over the next five years.
“Danantara will invest our nation’s resources and assets into sustainable, high-impact projects across various industries, including renewable energy, downstream industries, advanced manufacturing, and food production,” Prabowo stated at the World Governments Summit 2025.
Danantara will consolidate state-owned assets to generate funds, which may involve leveraging assets as loan collateral or even selling them.
Danantara’s Legal Framework: Backed by the SOE Law
The establishment of Danantara is outlined in the Third Amendment to Law No. 19 of 2003 on State-Owned Enterprises (SOEs), which was ratified during the 12th Plenary Session of the Indonesian Parliament (DPR RI) for the 2024/2025 Legislative Period on February 4, 2025.
Darmadi Durianto, a member of the House Commission VI, explained that Danantara would manage the assets of all SOEs and oversee SOE dividend allocations.
“Previously, dividends went directly to the Ministry of Finance, but now they will be managed by Danantara. Additionally, Danantara must establish an SOE holding company,” he stated.
He further clarified that profits and losses from Danantara’s holdings will not be considered part of the state’s financial gains or losses.
Prabowo: Danantara to Operate Transparently and Remain Auditable
President Prabowo Subianto assured that Danantara will be managed with transparency and accountability. He emphasized that the agency must be subject to audits by any relevant authority.
Prabowo remains confident that Danantara will strengthen Indonesia’s economic foundation, pushing the nation towards prosperity and global recognition.
“What we launched today is not just an investment fund but a national development tool designed to transform how we manage our nation’s wealth for the benefit of all Indonesians,” Prabowo affirmed, as quoted by merahputih.com.
Source: detik.com, tempo.co, merahputih.com
Special Photo credit: Press, Media, and Information Bureau of the Presidential Secretariat
