🧠 Food for thought

Implications, context, and why it matters.

The state’s new fund is more than an investor

• BPI Danantara is a sovereign wealth fund (SWF), a state-owned investment fund, launched on February 24, 2025 to manage state-owned enterprise (SOE) assets. Estimates place its asset base at around US$600 billion 1.
• Its launch drew market skepticism. In the following week, the Jakarta Composite Index, Indonesia’s main stock index, fell 7.09% as investors sold shares in SOEs being folded into the new entity 2.
• The governance structure has also drawn concern. One commentary said active government ministers lead the fund, which could create conflicts of interest 2.

A small stake could signal a larger state role in the digital economy

• The investment sits apart from a stated focus on domestic industrial projects, including processing raw materials such as minerals inside Indonesia, as well as energy projects. That suggests the motive may extend beyond financial returns, especially since GoTo’s stock fell to an all-time low of 50 rupiah (US$0.0029) in June 2024 3, 4.
• SVF GT Subco, a SoftBank-related investment entity, and Taobao China Holding, an Alibaba affiliate, remain among GoTo’s largest shareholders, according to Indonesia Stock Exchange data.