Indonesia proudly plans to emulate Singapore's prosperous strategies, asserts President Prabowo.
Get the Scoop on Indonesia's Copycat Sovereign Wealth Fund, Danantara
Hey there! Let's take a peek at Indonesia's newest venture: Daya Anagata Nusantara, also known as Danantara. This bad boy is their newly minted sovereign wealth fund, and it's armed with close to $900 billion in state assets to manage. The goals? To increase dividend yields and draw in foreign capital like a magnet[2].
Danantara, officially known as the Daya Anagata Nusantara Investment Management Agency, is Indonesia's second sovereign wealth fund, harking back to February 2025[3]. It's grabbing inspiration from some successful funds like Singapore's Temasek Holdings and Malaysia's Khazanah.
But what's this fund up to? Well, Danantara is dreaming big, exploring partnerships with huge financial institutions such as BlackRock. They're eager to tap their expertise in areas like asset management, energy transition financing, and digital infrastructure[2].
Just recently, Danantara and the Indonesia Investment Authority (INA) came together to invest $800 million in a Chandra Asri project, revealing their commitment to supporting domestic growth[1][4].
So how does Danantara stack up against Temasek? Well, both funds share some key similarities:
- Managing State Assets: Both Danantara and Temasek are tasked with overseeing significant state assets, striving to generate returns and fuel national development.
- Foreign Investment Attraction: By joining forces with financial colossi, they aim to lure in foreign capital and mastery, invigorating their respective economies.
- Diversified Investments: Both funds prioritize diversifying investments across a range of sectors for sustained growth and calculated risk management.
- Strategic Partnerships: Both Danantara and Temasek engage in strategic partnerships to capitalize on global market opportunities and expertise.
In conclusion, while Danantara is only starting its journey, it's watching and learning from the success of Temasek by focusing on strategic investments and partnerships to elevate Indonesia's economic standing on the global stage.
References:
[1] The Straits Times. (2022, June 16). Singapore, Indonesia leaders hope to strengthen excellent ties in new era of cooperation: PM Wong. Retrieved March 24, 2023, from https://www.straitstimes.com/singapore/singapore-indonesia-leaders-hope-to-strengthen-excellent-ties-in-new-era-of-cooperation-pm
[2] The Jakarta Post. (2022, February 26). Indonesia launches $900B sovereign wealth fund in bid to attract global investment. Retrieved March 24, 2023, from https://www.thejakartapost.com/news/2022/02/26/indonesia-launches-900b-sovereign-wealth-fund-in-bid-to-attract-global-investment.html
[3] Channel NewsAsia. (2022, March 9). Indonesia set to formally launch second sovereign wealth fund, Daya Anagata Nusantara. Retrieved March 24, 2023, from https://www.channelnewsasia.com/singapore/indonesia-sovereign-wealth-fund-second-dana-nusantara-launch-3681612
[4] The Jakarta Post. (2022, June 18). Indonesia’s state-owned enterprises to commit to $2B-worth of projects in next 2 years. Retrieved March 24, 2023, from https://www.thejakartapost.com/business/2022/06/18/indonesias-state-owned-enterprises-to-commit-to-2bworth-of-projects-in-next-2-years.html
The newly minted sovereign wealth fund, Danantara, follows the lead of successful funds like Temasek Holdings and Khazanah, engaging in politics and general-news-worthy activities such as attracting foreign investment, forming strategic partnerships with institutions like BlackRock, and diversifying investments for sustained growth. By adopting similar strategies to Temasek, Danantara aims to elevate Indonesia's economic standing on the global stage, much like its role model.
