Jayanty Nada Shofa, Jakarta – Indonesia's sovereign fund Danantara plans to set up a philanthropic arm and is hoping to join hands with American billionaire Bill Gates, its CEO said on Wednesday.
In February, Indonesia decided to follow in Singapore's footsteps by establishing the Danantara sovereign wealth fund, which is modelled after the close neighbor's Temasek. Danantara now wants to set up a philanthropic organization – also inspired by its Singaporean counterpart, Temasek Fund.
Danantara's boss Rosan Roeslani unveiled the plans when he met with Gates at Jakarta's Merdeka Palace. The technocrat founded the Gates Foundation, which has rolled out approximately $159 million in grants to Indonesia since 2009.
"We are setting up the Danantara Trust Fund. We have had internal discussions to commit up to 2.5 percent of our dividend payout ratio. Every year, we are going to put at least $100 million in the Danantara Trust Fund. For the next five or six years, we pledge to put up to $1 billion," Rosan told Gates.Rosan pointed out a "potential collaboration with the Gates Foundation" because, just like the American donor, the Danantara Trust Fund's work will revolve around healthcare, education, sanitation, and poverty alleviation, according to Rosan.
Health Minister Budi Gunadi Sadikin revealed that Indonesian tycoons had largely helped the country tackle the Covid-19 pandemic. However, their donations mainly flowed to Indonesia "through other countries", Budi said, citing the lack of a "trusted entity" as a reason. The minister alluded that the Danantara Trust Fund could get rid of the need for these charitable businesspeople to make donations through other countries.
"That's why we talked of copying what Temasek Trust has," Budi said.
"And I wish you [Gates] could sit at [Danantara Trust Fund's] board with your friend, Ray Dalio. Just like what you two [are doing] at Chinese philanthropy education," Budi added, alluding to the China Global Philanthropy Institute (CGPI).
American investor Ray Dalio and Gates were among the founders of the CGPI, an institute dedicated to philanthropy education.
Danantara has officially overseen the assets of all 844 Indonesian state-owned enterprises, including its parent companies, subsidiaries, and sub-subsidiaries. They will invest in strategic projects such as industrial processing, food production, and petrochemicals. Danantara has also appointed Dalio to join its advisory board. President Prabowo Subianto recently claimed that Danantara could eventually control assets worth $1 trillion if handled effectively.
"Rosan [as Danantara's chief executive officer] has ample money for the catalytic functions. I believe our friends here [the major philanthropists present in the room] can also contribute.... Mr. Gates has a systematic management that can help us earn [the philanthropists'] trust," Budi said.
Gates did not make a specific comment on the trust fund, or at least during the high-profile conference broadcast live on national television. However, early in the forum, Gates said he would like to continue to work with Indonesia with an upcoming initiative set to address anemia. Lippo Group boss James Riady and the resource-based conglomerate Barito Pacific Group's founder Prajogo Pangestu were some of the tycoons who attended the meeting.
In 2007, Temasek founded Temasek Trust to steward philanthropic assets and gifts from the investment firm and other donors. Temasek Trust is in charge of managing and disbursing the endowment funds. There is also a separate body called the Temasek Foundation, which develops and delivers the community programs.