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Hashim signals govt to keep saving $20b from budget over next five years
According to Hashim, these funds will be partially funneled into Danantara, Indonesia’s newly established sovereign wealth fund (SWF).
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Top adviser: Hashim Djojohadikusumo (right), business tycoon, as well as brother and economic adviser of then-presidential candidate Prabowo Subianto, speaks beside campaign official Fadli Zon on July 15, 2014, during a press conference in Jakarta. (AFP/Romeo Gacad)
P
resident Prabowo Subianto’s top advisor Hashim Djojohadikusumo has stated that this year’s budget cuts are not a one-time measure but part of a continued effort throughout the administration’s tenure.
Hashim, a tycoon and Prabowo’s brother, said the administration aims to save at least around US$20 billion each year over the course of next five years. This year, the government made cuts to ministerial and agency budgets to save a similar amount to support some priority programs.
“Our state budget will continue to grow, but all leakages […] and silly programs will be removed continuously. This approach will allow us to free up $20 billion every year, accumulating $100 billion in equity over five years,” he said at the CNBC Economic Outlook 2025 event on Wednesday.
Read also: Prabowo’s Danantara faces uphill battle for investor trust
According to Hashim, these funds will be partially funneled into Danantara, Indonesia’s newly established sovereign wealth fund, which is hoped to raise the country’s economic growth from 5.03 percent last year to 8 percent by 2029.
The wealth fund, which will manage total assets of around $900 billion from all state-owned enterprises (SOEs), is set to focus on a wide range of strategic sectors, from the downstream nickel, bauxite and copper industries to artificial intelligence data centers, oil refineries, petrochemicals, food production, aquaculture and renewable energy.
“If we could secure foreign investors [to coinvest on equal terms with Danantara], our $20 billion fund could double to $40 billion. And if we apply three times leverage, we’re getting $120 billion in available funds every year,” he explained. “That’s why I’m optimistic.”
