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Prabowo to fund $20 billion Danantara with budget cuts, SOE dividends
The fund’s immediate priority would be kickstarting 15 multibillion-dollar megaprojects without tapping external financing, according to the President, such as renewable energy, advanced manufacturing, downstream industries and food production.
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President Prabowo Subianto (right), in his capacity as chairman of the Gerindra Party, delivers his speech during the 17th anniversary of the party at Sentul International Convention Center, Bogor, West Java, on Feb. 15, 2025. (Antara/Hafidz Mubarak A)
P
resident Prabowo Subianto has announced that Indonesia’s new sovereign wealth fund Danantara will be seeded with US$20 billion, drawn from deeper government-wide budget cuts and state-owned enterprise (SOE) dividends.
Speaking at his Gerindra Party’s anniversary celebration in Bogor, West Java, on Saturday, he said SOE dividends would contribute a significant portion of the fund that would be formally launched by the President on Feb. 24.
“We’re making sure we start strong without relying on foreign investment. We’ll stand on our own feet, as Bung Karno envisioned,” Prabowo said in his speech, referring to the country’s founding father.
The fund’s immediate priority would be kickstarting 15 multibillion-dollar megaprojects without tapping external financing, according to the President, such as renewable energy, advanced manufacturing, downstream industries and food production.
Read also: Prabowo to launch Danantara’s $20b venture on Feb. 24
Prabowo explained he is eyeing savings of over Rp 750 trillion (US$44 billion) through multiple phases of fiscal consolidation this year.
His administration has concluded the first phase by identifying over Rp 300 trillion to be saved up in the state's discretionary fund. The second phase is set to save up Rp 250 trillion more from budget cuts across ministries and agencies, as well as regional governments, which he ordered earlier this year.
