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Distrust in Danantara sparks online calls to switch banks
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A security personnel patrols past the building housing sovereign wealth fund known as Daya Anagata Nusantara, or Danantara, in Jakarta on Feb. 24, 2025, which was earlier launched by President Prabowo Subianto. Prabowo on Feb. 24 launched a new sovereign wealth fund set to be the biggest in Southeast Asia's largest economy and give the ex-general greater control of the country's coffers. He wants to tap into the fund's assets – 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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rowing public distrust of the newly formed sovereign wealth fund, Daya Anagata Nusantara (Danantara), has sparked online discussions on switching banks and cash withdrawals, leading analysts to debate the actual risks of a potential bank run or the ensuing economic crisis.
Public opinion has split on Danantara, which aims to consolidate major state-owned enterprises (SOEs) including those in the banking sector, at a time when state budget cuts have raised concerns that taxpayers’ money was not being put to good use.
Fajar Adi, a university student in Jakarta, expressed his concerns over Danantara with The Jakarta Post on Thursday. The investment management firm projected to manage up to US$900 billion in assets without much transparency, he suggested, was a big gamble.
“If it succeeds, the profits will be big. But if it fails, the losses will also be huge. I worry that if it collapses, millions of customers, including myself, could lose our money in state-owned banks,” he said.
Launched earlier this week by President Prabowo Subianto with $20 billion in initial capital, Danantara is envisioned to be a driving force that will boost the country’s economic growth. The fund is set to focus on a wide range of strategic sectors, from the downstream nickel, oil refineries, petrochemicals, and renewable energy.
But the public remained skeptical of its success given the country’s long history of mismanagement within its SOEs. Some even expressed concern that Danantara could turn out like Malaysia’s 1MDB fund embroiled in a massive corruption scandal.
Read also: Prabowo’s Danantara faces uphill battle for investor trust
