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Danantara snubs megaproject Nusantara in investment priorities: State Palace
The Nusantara Capital City (IKN) Authority had been hoping for a slice of Danantara’s capital to support the megaproject’s development, its head Basuki Hadimuljono said on Monday.
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A security guard patrols past the building housing sovereign wealth fund Daya Anagata Nusantara, or Danantara, on Feb. 24 in Jakarta. President Prabowo Subianto on Feb. 24 launched the new sovereign wealth fund which is set to be the biggest in Southeast Asia's largest economy and give the ex-general greater control of the country's coffers. Prabowo wants to tap into the fund's assets, which are planned to be more than US$900 billion, to boost Indonesia to developed economy status, despite expert concerns about its governance. (AFP/Bay Ismoyo)
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ndonesia’s newly launched sovereign wealth fund, Danantara, will not prioritize funding for Nusantara, the future capital city located in East Kalimantan, presidential spokesman Hasan Nasbi said on Monday, stressing the fund would focus its investment on downstream industrial development.
“Danantara is an instrument for accelerating development, mainly in downstream sectors, to boost development and to drive key industries forward,” Hasan told reporters at the State Palace in Jakarta.
President Prabowo Subianto launched Danantara on Monday, tasking it with managing over US$900 billion in assets to help drive development in Southeast Asia's largest economy and fulfill his ambitious promise of boosting economic growth to 8 percent.
Read also: Prabowo’s new Danantara faces uphill battle for investor trust
The fund will invest its initial capital of $20 billion across dozens of multibillion-dollar megaprojects, from downstream nickel, bauxite and copper industries, artificial intelligence data centers, oil refineries, petrochemicals, food production, aquaculture and renewable energy.
“It is an accelerator [for the country’s development] so it will heavily focus on downstream sectors,” Hasan emphasized, suggesting that projects outside this scope were unlikely to receive funding.
Danantara will be the country’s second sovereign wealth fund, after the Indonesia Investment Authority (INA), which was launched in 2021 and holds $10.5 billion in assets.
