Ray Dalio, an American billionaire, will continue as an informal advisor to Indonesia’s investment management body, Danantara.

The organization announced on June 2, 2025 that his role is voluntary and unpaid.

Danantara clarified that Dalio provides advice to both its leadership and President Prabowo Subianto.

Over the past year, he has helped shape Danantara’s initiatives aimed at attracting investments in sectors vital for Indonesia’s long-term development.

🔗 Source: CNN Indonesia

🧠 Food for thought

1️⃣ Sovereign wealth funds increasingly rely on star power for global credibility

Indonesia’s Danantara exemplifies how emerging economies are strategically recruiting high-profile international advisors to boost their sovereign wealth funds’ global credibility.

The inclusion of Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund with a personal net worth of approximately $15.4 billion, alongside former UK Prime Minister Tony Blair and economist Jeffrey Sachs creates a powerful advisory team 12.

This approach is similar to strategies used by more established sovereign wealth funds like Singapore’s GIC and Temasek, which have leveraged international expertise to enhance their global standing and investment capabilities.

For Indonesia, these high-profile advisors serve not just as financial guides but as signals to international markets about the fund’s seriousness and potential, critical for a country working to attract greater foreign investment to its $1.2 trillion economy 3.

The voluntary, unpaid nature of Dalio’s role suggests a genuine belief in Indonesia’s economic potential rather than simple financial motivation, potentially increasing investor confidence in Danantara’s mission.

2️⃣ Recent confusion highlights communication challenges for new investment initiatives

The contradictory reports about Dalio’s status—with initial claims of his departure 45 followed by official clarifications of his continued involvement 2—demonstrate the communication challenges facing new government investment initiatives.

This information gap created unnecessary market uncertainty, with analysts examining whether Dalio’s rumored exit might reflect deeper problems with Danantara’s strategy or Indonesia’s investment climate 4.

The episode highlights how sovereign wealth funds, particularly new ones like Danantara, must carefully manage public communications about high-profile relationships, as even temporary confusion can impact market perception and potentially undermine investor confidence.

Recent Danantara developments