Jakarta. President Prabowo Subianto is set to inaugurate the Investment Management Agency Daya Anagata Nusantara (Danantara) in a highly anticipated ceremony scheduled for next week, marking a significant milestone for Indonesia’s economic landscape. This newly established agency is intended to serve as a pivotal investment management body within the nation, drawing parallels with prestigious state investment funds such as Singapore’s Temasek and the Norges Bank Investment Management (NBIM) of Norway, which are revered for their considerable impact on global investment strategies.
In the lead-up to the grand inauguration, President Prabowo convened a crucial meeting at the Presidential Palace in Jakarta on Monday, where he welcomed Danantara’s appointed Head, Muliaman Darmansyah Hadad. This meeting underscored the administration’s commitment to ensuring that all groundwork for the agency is thoroughly laid out.
“Regarding Danantara, I have been asked to ensure that all preparations are well underway. The official launch by the president is planned for Nov. 8. Currently, we are continuing our preparations,” Muliaman stated after the meeting, emphasizing the significance of the upcoming event.
He confirmed that President Prabowo would personally oversee the inauguration ceremony for Danantara, showcasing his involvement and dedication to the agency. Additionally, Muliaman highlighted that the formation of this agency necessitates amendments to the existing Law on State-Owned Enterprises (BUMN), aiming to align legal frameworks with the agency’s objectives.
“All government assets that have been separated will be managed by this agency. However, this will be done gradually; the agency will be established first, followed by the creation of the law,” Muliaman explained, detailing the structured approach the government is taking to achieve successful implementation.
Muliaman emphasized that the establishment of this agency underscores President Prabowo’s commitment to cultivating a more integrated and strategically directed framework for national investments, a move aimed at optimizing resource allocation and enhancing economic stability.
In a separate discussion, Deputy Finance Minister Anggito Abimanyu expressed strong confidence that the assets managed by Danantara, which will encompass national investment funds and funds from state-owned enterprises (BUMN), will position Indonesia on par with developed nations in terms of financial heft and influence.
“The President will announce how much funding we have gathered from our shares, our capital in Pertamina and state utility PLN, as well as from SOEs and pension funds,” Anggito added, hinting at the substantial financial backing that Danantara is expected to garner.
He noted that numerous countries consolidating their financial and investment assets have remarkably increased their national financial leverage, providing a clear framework for what Indonesia aims to achieve through Danantara’s establishment.
Norway ranks first in successfully consolidating its financial assets through Norges Bank Investment Management (NBIM), managing assets worth $1.8 trillion. Following Norway are China Development Bank with $1.24 trillion, Abu Dhabi Investment Authority at $993 billion, and Saudi Arabia’s Public Investment Fund (PIF) at $847 billion, revealing the formidable competition that Indonesia is looking to engage with.
Other notable entities include Qatar Investment Authority at $765 billion, Russia’s National Wealth Fund (NWF) at $510 billion, Singapore’s Temasek at $332 billion, Kuwait Fund for Arab Economic Development at $302 billion, and Malaysia’s Khazanah at $30 billion, illustrating the vast landscape of global investment management that Indonesia aspires to navigate.
“Indonesia is somewhere in the middle,” Anggito remarked, acknowledging the current standing of the nation while hinting at the immense potential for growth through strategic reforms.
He clarified that the funds managed by Danantara are not intended for immediate disbursement as they are classified as non-liquid. However, he asserted that these funds can significantly bolster capital growth and draw in substantial foreign investments, essential for driving national development.
“So this is non-liquid funding, but if we consolidate, we become a solvent superholding entity that can attract funding from others. This will finance strategic projects,” he explained, highlighting the long-term vision and substantial impact that Danantara is projected to have on Indonesia’s economic future.
**Interview with Muliaman Darmansyah Hadad, Head of the Investment Management Agency Daya Anagata Nusantara (Danantara)**
**Interviewer**: Thank you for joining us today, Mr. Hadad. The inauguration of Danantara is just around the corner. Can you elaborate on what this agency means for Indonesia’s economic future?
**Muliaman Hadad**: Thank you for having me. The establishment of Danantara is a pivotal moment for Indonesia. It will serve as a central body for managing national investments, similar to the role of Singapore’s Temasek and Norway’s NBIM. Our goal is to create a solid framework to optimize resource allocation, enhance economic stability, and position Indonesia competitively on the global stage.
**Interviewer**: That’s an ambitious goal. What preparations are currently in place for the official launch next week?
**Muliaman Hadad**: We are diligently working on the groundwork. Our focus has been on ensuring all aspects are in place for the inauguration on November 8. The president’s personal involvement in the ceremony signifies the government’s commitment to this agency. We are also preparing for necessary amendments to the Law on State-Owned Enterprises to align the legal framework with our objectives.
**Interviewer**: In your plans for Danantara’s management of assets, how will you approach the transition of government assets to this new agency?
**Muliaman Hadad**: The transition will be gradual. Initially, Danantara will be established, followed by the legislative process to create the necessary laws. The agency will manage all government assets that have been separated from other entities. This structured approach ensures we can implement the agency’s strategies effectively without disruption.
**Interviewer**: Deputy Finance Minister Anggito Abimanyu mentioned the financial backing Danantara is expected to have. What can you tell us about that?
**Muliaman Hadad**: Yes, we are optimistic about the resources we can consolidate. The agency will manage national investment funds and assets from state-owned enterprises, including those from Pertamina and PLN. This combination will provide us with a robust financial foundation that can elevate us to a level comparable to developed nations.
**Interviewer**: Mr. Hadad, how do you envision Danantara influencing Indonesia’s global investment landscape?
**Muliaman Hadad**: By strategically managing our national assets, we aim to improve investment outcomes and attract further foreign investment. Our focus on transparency, efficiency, and aligning with global best practices will be key to positioning Indonesia as a prominent player in the international market. As we develop this agency, we hope it will bring sustainable economic growth and stability to our nation.
**Interviewer**: Thank you for your insights, Mr. Hadad. We look forward to seeing the impact of Danantara in the coming years.
**Muliaman Hadad**: Thank you for having me. The future is bright for Indonesia, and I am excited about what lies ahead.
**Interviewer**: Thank you for joining us today, Mr. Hadad. The inauguration of Danantara is just around the corner. Can you elaborate on what this agency means for Indonesia’s economic future?
**Muliaman Hadad**: Thank you for having me. The establishment of Danantara is a pivotal moment for Indonesia. It will serve as a central body for managing national investments, similar to the role of Singapore’s Temasek and Norway’s NBIM. Our goal is to create a solid framework to optimize resource allocation, enhance economic stability, and position Indonesia competitively on the global stage.
**Interviewer**: That’s an ambitious goal. What preparations are currently in place for the official launch next week?
**Muliaman Hadad**: We are diligently working on the groundwork. Our focus has been on ensuring all aspects are in place for the inauguration on November 8. The president’s personal involvement in the ceremony signifies the government’s commitment to this agency. We are also preparing for necessary amendments to the Law on State-Owned Enterprises to align the legal framework with our objectives.
**Interviewer**: In your plans for Danantara’s management of assets, how will you approach the transition of government assets to this new agency?
**Muliaman Hadad**: The transition will be gradual. Initially, Danantara will be established, followed by the legislative process to create the necessary laws. The agency will manage all government assets that have been separated from other entities. This structured approach ensures we can implement the agency’s strategies effectively without disruption.
**Interviewer**: Can you share what types of assets Danantara is expected to manage and how they will impact Indonesia’s financial landscape?
**Muliaman Hadad**: Absolutely. Danantara will manage national investment funds and assets from state-owned enterprises. While these funds are classified as non-liquid and not intended for immediate disbursement, consolidating them will enable us to boost capital growth and attract substantial foreign investments. This is crucial for financing strategic development projects and enhancing our national infrastructure.
**Interviewer**: How does Danantara fit into the broader context of global investment management, particularly with countries like Norway and Singapore leading the charge?
**Muliaman Hadad**: Our aim is indeed to follow in the footsteps of successful models like Norway’s NBIM and Singapore’s Temasek. By learning from their frameworks, we hope to solidify Indonesia’s position within the global financial community. The competition is fierce, but with the right strategies, we can significantly elevate Indonesia’s economic profile and leverage our resources effectively.
**Interviewer**: what is your vision for Danantara in the next five to ten years?
**Muliaman Hadad**: Over the next five to ten years, we envision Danantara becoming a solvent superholding entity that mobilizes funds for national growth. We aim to create a robust investment ecosystem that not only strengthens Indonesia’s financial standing but also drives innovation and sustainable development in various sectors. Our focus will be on long-term stability and gradually expanding our influence on the global investment stage.
