Indonesia’s Danantara under pressure to show real results

Danantara, Indonesia’s sovereign wealth fund, launched in February 2025 as a pillar of President Prabowo Subianto’s economic agenda. It was tasked with consolidating oversight of roughly 1,000 state-owned enterprises (SOEs) and generating investment returns.

A year on, the investment vehicle has those institutional structures largely in place. But its long-term credibility will depend more on execution, transparency, and measurable returns, according to analysts.

Photo credit: Danantara

With the foundations having been laid, performance delivery becomes the real test.

Slow and steady

Johan Sulaeman, director of the Sustainable and Green Finance Institute at the National University of Singapore (NUS), says the fund has deployed capital relatively cautiously in terms of new investments.

“This seems appropriate since sovereign vehicles that deploy too aggressively in year one can compromise portfolio construction discipline,” he points out.

With some US$900 billion in assets under management, Danantara is preparing to raise its capital deployment to around US$14 billion this year, as it seeks to support Prabowo’s target of boosting economic growth by 8% within his term.

See also: Golden share gives Jakarta sway in emerging Grab-GoTo merger

The fund deployed about US$12 billion last year in a mix of project financing, direct investments, and public market placements. This capital poured into sectors such as healthcare, energy, and renewable industries.

Danantara has secured support in its investment activities from multinational partners. These include sovereign wealth funds such as the Qatar Investment Authority, Australia’s Future Fund, and China Investment Corporation.

However, Edward Gustely, managing director of Indonesia-based investment advisory firm Penida Capital Advisors, says investors remain cautious and are waiting for independent verification of Danantara’s performance before committing deeper capital.

“Building investor confidence is driven by results, not daily media campaigns and signing ceremonies,” he notes. “Market trust will follow when it sees completed transactions such as asset disposals, IPOs, and co-investments that are actually executed and closed with Danantara’s involvement.”

Political status

Danantara reports directly to the president and has been tapped as a central instrument for drawing in capital and stimulating growth in Indonesia.

The fund is led by Rosan Roeslani, the country’s minister of investment and downstreaming. He previously headed Prabowo’s campaign team during the 2024 presidential election.

Scrutiny

Growing pains