On Monday, Indonesia launched a new sovereign wealth fund aimed at managing the assets of the country, which is worth more than $ 900 billion, as President Prabu Subanto is looking for turbo growth in the largest economy in Southeast Asia.
The leader, who was recently opened, pledged to take the annual growth of the archipelago from five to eight percent, as he requested discounts of billions of dollars in all parts of the government, which last week raised the first protests of his rule.
Prabu signed a document in the Presidential Palace in Jakarta, which started the new box known as Daya Anagata Nusantara, or Danantara, which was designed on the investment arm in Singapore and obtained the approval of this month in the parliament dominated by the ruling president.
He said in the palace: “I, as President of the Republic of Indonesia, signed … the government’s decree … on the organization and governance of the Investment Administration Authority, Daya Angata Nosantara,” he said in the palace.
“It is not just an investment, it is a tool for national development that will improve the way we manage our wealth. We are committed to being a developed nation.”
Danantara will have the control of government holdings in government companies, with an initial budget of $ 20 billion, according to ANTARA.
“The journalists after the signing,” said investment minister Rosan Rosalani as the CEO of the Fund, as the Minister of Coordination for Air Economic Affairs Hartara told reporters after the signing.
The government did not specify state -owned companies to control the fund, but Prabu said he wanted to run more than 900 billion dollars of assets.
As of 2023, government data showed the assets of state -owned institutions worth $ 637.5 billion, much less than Brabu’s goal.
The fund will be used as an investment car and said that “it will be invested in 20 highly influential national projects” this year.
Brabu said that the initial funding will be used for projects in nickel, bauxite, copper, food and renewable energy, and the construction of the Amnesty International Center, the oil refinery and the petrochemical factory.
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Danantara will be the second sovereign wealth fund in Indonesia, after the origins of Indonesia that was launched in 2021 and owns $ 10.5 billion of assets.
“This event represents a new era in the transformation of the strategic investment management in the country,” Youssef Permina, a spokesman for the presidential secretariat, said in a statement on Sunday.
“It is also part of the government’s commitment to realize … a wonderful vision aimed at raising the Indonesian economy to a higher level through sustainable and comprehensive investments.”