JAKARTA: Indonesia has started a new national money fund to help the country grow faster. President Prabowo Subianto launched the fund, called DANANTARA – Daya Anagata Nusantara, at a special event in Jakarta on February 24, 2025. This fund will manage government assets worth over $900 billion and focus on making Indonesia’s economy stronger.
What is Danantara?
Danantara is like Singapore’s Temasek Holdings, a big investment company. It will handle businesses owned by the government and start with a $20 billion budget. Indonesia’s Investment Minister, Rosan Roeslani, will be in charge of running it. The fund will invest in important areas like:
Nickel, Copper, and Bauxite (used for making metals)
Food production
Renewable energy (like solar and wind power)
Artificial intelligence (AI)
Oil refining
Why Did Indonesia Start Danantara?
President Prabowo wants Indonesia’s economy to grow from 5% to 8% per year. To do this, the government has cut budgets in different departments. But these budget cuts have made some people unhappy. Students in different cities have protested, saying they are worried about how the government is spending money.
Challenges and Reactions
The government says Danantara will help the economy, but some experts warn that there must be strict rules to stop corruption. Many people on social media have also questioned whether the government will be honest about how they manage the money.
This is Indonesia’s second wealth fund. The first one, called Indonesia Investment Authority (IIA), was made in 2021 and now manages $10.5 billion. Officials believe Danantara will help build a stronger and more stable economy for the future.
This launch comes following Southeast Asia’s largest economy witnessed a wave of student protests in Indonesian major metros last week. With this effect of the government’s budget reduce to fund Prabowo’s flagship scheme - THE FREE NUTRITIOUS MEAL INITIATIVE FOR STUDENTS - as well Danantara.