Indonesia's Sovereign Wealth Fund Danantara Focuses on Real-Sector Investments for Sustainable Economic Growth
Key Ideas
  • Danantara aims to maximize its contribution to Indonesia's economic growth by focusing on long-term, real sector investments that attract additional private and foreign inflows.
  • The fund has secured significant international investment commitments and recently partnered with ACWA Power for large-scale clean energy projects, including green hydrogen technologies.
  • Experts emphasize the importance of prioritizing sustainable investment in strategic sectors like energy transition, EVs, and infrastructure to drive long-term growth and industrial self-reliance.
  • By deploying capital strategically and avoiding overreliance on portfolio investments, Danantara is poised to play a crucial role in Indonesia's future economic development and attracting sustainable investments.
Indonesia's sovereign wealth fund, BPI Danantara, has been advised to concentrate on long-term, real sector investments to maximize its impact on the national economic growth trajectory. The fund's strategic deployment of capital is deemed crucial alongside the volume of capital raised. Herry Gunawan, an SOE analyst, emphasized the need for Danantara to serve as a magnet for private and foreign capital to bolster economic performance. He highlighted the significance of shifting focus from portfolio investments to real-sector projects, especially in intermediate industries to reduce import dependency and generate substantial job opportunities. Since its inception in February 2025, Danantara has garnered significant international investment commitments and recently announced a collaboration with ACWA Power, a major player in green hydrogen and desalination technologies, for clean energy initiatives. This partnership is expected to drive large-scale projects in the clean energy sector. Economist Wijayanto Samirin stressed the importance of a long-term strategic vision, pointing out key sectors like downstream industrialization, energy transition, EVs, and infrastructure as avenues for sustainable growth. By adhering to a strategic investment approach and focusing on vital sectors, Danantara is anticipated to play a pivotal role in shaping Indonesia's economic future, promoting industrial self-reliance, and attracting sustainable investments for key sectors. The fund's collaboration with ACWA Power underscores its commitment to clean energy projects and signals a positive trajectory for Indonesia's economic development.
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