The Indonesian government plans to allocate US$20 billion from the country’s state budget each year to Danantara – its new sovereign wealth fund – during President Prabowo Subianto’s term.

The announcement was made by Hashim Djojohadikusumo, the president’s brother and envoy for climate and energy, on Feb. 27.

Djojohadikusumo also said Danantara will collaborate with other investors, including Ray Dalio’s Bridgewater, holding a 50:50 ownership in certain projects.

This partnership could allow the firm to manage investments worth up to US$160 billion annually through leverage mechanisms.

Initially, the initiative involved consolidating seven state-owned enterprises (SOEs) and the Indonesia Investment Authority. It has since expanded to include all SOEs and their subsidiaries.

Recent Danantara developments