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Prabowo wants Danantara to drive local funding for govt projects: Minister
President Prabowo hopes the country could have strong domestic capability to finance its own projects, particularly through Danantara.
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Reducing foreign funding: Then-deputy state-owned enterprises minister Rosan Roeslani delivers a speech during the second day of the ASEAN-Indo-Pacific Forum (AIPF) in Jakarta on Sept. 6, 2023. (Antara/Media Center KTT ASEAN 2023/Aditya Pradana Putra)
P
resident Prabowo Subianto has requested regular updates on the progress of establishing the Investment Authority of Indonesia (IAI) Danantara from his aides, and has also conveyed his desire that the body could help reduce the country’s reliance on foreign funding in government projects.
Investment and Downstream Minister Rosan Roeslani said on Monday that the President hopes the country could have a strong domestic capability to finance its own projects, particularly through Danantara, which is not to be confused with the already formed Indonesia Investment Authority (INA).
The President emphasized that the establishment of Danantara should be done with attention to transparency, regulatory compliance and good governance as its foundation, Rosan added.
“He hopes the process will be carried out quickly and done well,” Rosan said after a meeting with the President on Monday, citing discussions which also highlighted food security, energy security and downstreaming.
Currently, there is no clarity on how Danantara would build its funding capability.
Danantara is expected to consolidate seven major state-owned enterprises (SOEs), namely lenders Bank Mandiri, BRI and BNI, telecommunications giant Telkom Indonesia, oil and gas company Pertamina, electricity provider PT PLN and mining holding firm MIND ID.
Together, those companies hold approximately Rp 8.9 quadrillion (US$570 billion) in assets, representing over 85 percent of all Indonesian SOEs assets. They also contributed around Rp 72.8 trillion in dividends to the state budget last year, accounting for nearly 90 percent of SOEs dividend payouts.
