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View all search resultsDanantara's new fund risks reopening old infrastructure funding pitfalls
Corporate filings show Danantara chief technology officer Sigit Puji Sentosa is expected to lead new fund DDMF, while Rachmat Kaimuddin, currently deputy for basic infrastructure coordination at the Office of the Coordinating Infrastructure and Regional Development Minister, has been appointed to its executive team.
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Wisma Danantara Indonesia stands out on July 8, 2025, on Jl. Jenderal Sudirman, Central Jakarta. (Antara/Hafidz Mubarak A)
S
tate asset fund Danantara has quietly established a new investment vehicle that could channel funding from the state budget into President Prabowo Subianto’s infrastructure projects, including the Giant Sea Wall along Java’s northern coast and the three-million-home program.
Experts warned that layering the new fund onto Danantara’s commercial mandate could expose the state budget to greater risks unless it is backed by strong governance, something Indonesia’s infrastructure projects have historically lacked.
Corporate records filed with the Law and Human Rights Ministry show the new entity, PT Danantara Development Management Fund (DDMF), was established in April, shortly after Government Regulation No. 19/2026 amended Danantara's governance framework to allow the state asset fund to establish additional investment holding companies.
The new regulation effectively splits Danantara's investment functions into two models: one focused on commercial financial returns and another dedicated to national development and public service projects.
When the agency was launched last year, it was mandated to manage around US$900 billion in state assets across more than 1,000 companies and maximize investment returns without relying on state budget funding. The establishment of DDMF, however, signals a shift in that mandate.
Read also: Danantara draws over $4.6 billion in orders for debut dollar bond
Unlike Danantara Investment Management (DIM), the agency’s investment arm which pursues commercial returns, a development-oriented holding may receive state capital injections and, upon receiving them, would become a state-owned enterprise designated as a ‘fiscal instrument’ as per the regulation.
