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Danantara, a blueprint for independence, strategy and growth
A law that enshrines Danantara’s independence is essential, mandating transparency and accountability while preventing external pressures from dictating its investment decisions.
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Managing state assets: (Left to right) State-Owned Enterprises Minister Erick Thohir, MIND ID CEO Hendi Prio Santoso, PT Freeport Indonesia CEO Tony Wenas, PT Aneka Tambang (Antam) CEO Nicolas Kanter and Deputy Energy and Mineral Resources Minister Yuliot Tanjung pose for a photo during the gold purchase agreement signing between Antam and Freeport Indonesia on November 7 in Jakarta. (SOE Ministry/-)
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et’s delve into Danantara, an ambitious venture poised to redefine how state assets are managed and leveraged for long-term value.
Establishing a powerful investment company is not straightforward. Giants like Singapore’s Temasek and Malaysia’s Khazanah have had decades to evolve, building resilient frameworks that allow them to thrive. While their models offer valuable lessons, the landscape Danantara will navigate is unique, presenting distinct challenges that demand a tailored approach.
To start, Danantara needs a structure capable of managing a broad and varied asset portfolio. The superholding model is the logical choice, but success hinges on avoiding bureaucratic inefficiencies. This means designing dedicated divisions focused on core asset management, strategic partnerships and high-growth innovations.
Each division should have its own specialized teams and decision-making processes to allow for quick, informed actions. Such an arrangement can ensure Danantara’s flexibility, which is an essential quality for operating effectively outside traditional government constraints.
A key strategic move should be to prioritize blue-chip state assets and state-owned enterprises (SOEs) within Danantara’s portfolio. Concentrating on high-value, established assets will provide a stable foundation for consistent returns. This strategy not only builds credibility, but also creates the financial momentum needed to fuel ambitious, growth-oriented investments.
By demonstrating early successes with blue-chip investments, Danantara can build trust and reinforce its role as a capable steward of national wealth.
Initial funding will be one of Danantara’s first major tests. Unlike Temasek, which started with a strong base of valuable assets, Danantara will need to assemble its initial capital through the transfer of underperforming but potentially lucrative state assets.
