President Prabowo Subianto officially launched Danantara on February 24, 2025. He introduced the institution as part of a national effort to strengthen Indonesia’s economy. The launch took place at the Presidential Palace and drew significant public attention.
President Prabowo stated that Danantara is not just a regular investment body. He emphasized that Danantara will become a key national development tool. Its main goal is to optimize the management of Indonesia’s wealth.
According to the official website of the State Secretariat, Danantara will manage national investments professionally. The government expects this agency to increase efficiency and synergy among state assets.
What Is Danantara?
Danantara stands for Daya Anagata Nusantara. Each word in the acronym carries a deeper meaning:
- Daya means energy or power
- Anagata means the future
- Nusantara refers to the Indonesian archipelago
President Prabowo explained that Danantara represents Indonesia’s future economic power. He described it as a long-term investment vehicle for the nation.
What Will Danantara Do?
Danantara will serve as a Sovereign Wealth Fund (SWF). It will consolidate various government-owned assets under one body. This approach will make investment policies more strategic and impactful.
The concept behind Danantara is inspired by Temasek Holdings of Singapore. Just like Temasek, Danantara will manage cross-sector investments. However, Danantara’s scope will be broader.
In fact, Danantara will act as a super holding company. It will become the parent of Indonesia’s major state-owned enterprises (BUMN). This means Danantara will control BUMNs across different industries.
The government has already prepared the legal foundation to support Danantara, including:
- Law No. 1 of 2025 (amending Law No. 19 of 2003 on State-Owned Enterprises)
- Government Regulation No. 10 of 2025 (on the structure and governance of Danantara)
- Presidential Decree No. 30/2025 (appointing Danantara’s Supervisory and Executive Boards)
Danantara’s Connection to BUMNs
Danantara will soon take control of all BUMN assets. According to Danantara COO Dony Oskaria, the asset transfer must happen before the next General Shareholders Meeting in March 2025.
Initially, seven major BUMNs will be consolidated under Danantara:
- Bank Mandiri
- Bank Rakyat Indonesia (BRI)
- Bank Negara Indonesia (BNI)
- Pertamina
- PLN
- Telkom Indonesia
- Mining Industry Indonesia
The goal is to transform these companies into globally competitive leaders. Danantara will also reinvest BUMN dividends into sectors that support long-term economic growth.
What Is a Sovereign Wealth Fund?
According to the Ministry of Finance, a Sovereign Wealth Fund (SWF) is a government-owned investment fund. It holds foreign assets and invests them to gain long-term returns. SWFs help protect the economy, fund infrastructure, and prepare savings for future generations.
Danantara’s vision reflects this role. It aims to become a world-class SWF that drives national development. It will support Indonesia’s economic transformation by investing in strategic sectors.
Danantara will:
- Strengthen investment governance
- Improve long-term national returns
- Position Indonesia competitively in the global market
- Drive BUMN transformation
- Encourage sustainable economic growth
With Danantara now in place, Indonesia is set to enter a new era of strategic investment management.
