Novie Fauziah, Jakarta – The sovereign wealth fund Danantara will become Indonesia's new strategy to make the best use of its state assets, according to a presidential special envoy.

President Prabowo Subianto has decided to shift the assets of Indonesian state-owned enterprises (SOEs) to the soon-to-be-launched Danantara. The fund will reportedly manage assets of state-run banks Mandiri and BNI, as well as telecommunications giant Telkom, to name a few. Its launch is slated for Monday at around 10 a.m. Raffi Ahmad, the president's special envoy for youth development and arts, is looking forward to its establishment.

"Danantara exists as a new strategy to optimize state assets by managing SOEs' dividends and investment in a more integrated manner," Raffi posted on the social media platform Instagram on Monday, just hours before the fund's official launch.

Raffi then remarked on how other countries have run similar models to catapult their economies. He said: "We have Singapore's Temasek Holdings, China Investment Corporation, and Malaysia's Khazanah Nasional successfully improving their countries' economic competitiveness [by atrracting] global investment."

According to Raffi, the government has vowed to "manage Danantara in a professional and transparent manner".

Prabowo recently claimed that Danantara's assets under management could exceed $900 billion. It will start with $20 billion in initial capital to invest in sustainable high-impact projects, including renewable energy and food production. According to media reports, Investment Minister Rosan Roeslani will become Danantara's chief executive officer. He will replace senior economist and former diplomat Muliaman Darmansyah Hadad.

Source: https://jakartaglobe.id/business/danantara-indonesias-new-strategy-to-manage-state-asset