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Danantara to position itself as more domestic-focused wealth fund, head says
While the fund will still consider investments in foreign assets, Muliaman emphasized that its primary focus will be on financing local development and government projects, and foreign investors can provide funding alongside Danantara.
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Danantara head Muliaman D. Hadad delivers a speech at an event in Jakarta in an undated photo. (JP/Dana Wardhana)
T
he Investment Authority of Indonesia (IAI) Danantara will adopt a more “domestic-oriented” approach, focusing on attracting foreign investment, the body’s head Muliaman Hadad said.
Muliaman explained that several major sovereign wealth funds (SWFs), including those in Europe and the Middle East, typically focus on managing surpluses from oil production and channel these funds into overseas assets, but he pointed out that “the situation in Indonesia is different”.
"Danantara will act as ‘an inducer’ for foreign investors to participate in the country’s development while supporting the government’s priorities,” Muliaman said in an interview with Kompas TV on Thursday.
While the fund will still consider investments in foreign assets, Muliaman emphasized that its primary focus will be on financing local development and government projects, and foreign investors can provide funding alongside Danantara.
Danantara shares a similar purpose with the Indonesia Investment Authority (INA), the country’s first sovereign wealth fund created under former President Joko “Jokowi” Widodo.
President Prabowo Subianto is expected to integrate the wealth fund into Danantara, which the government has also designed to act as a super holding company for state-owned enterprises (SOEs).
Muliaman praised the INA’s credibility among foreign investors but noted that the government seeks to expand its capacity to manage assets and allocate funding for critical projects.
