Danantara Indonesia launches with prominent advisors and investors

Danantara Indonesia announced a new team of advisers on Monday to guide its strategy. This team includes former Indonesian Presidents Joko Widodo and Susilo Bambang Yudhoyono, along with prominent figures like hedge fund manager Ray Dalio, economist Jeffrey Sachs, and former Thai Prime Minister Thaksin Shinawatra. Launched last month, Danantara aims to help Indonesian President Prabowo Subianto reach an 8 percent economic growth target by 2029. The fund will manage shares of state-owned enterprises and reinvest profits into commercial projects. It could eventually manage over $900 billion in assets, similar to Singapore's Temasek fund. Sachs confirmed he will serve as a special adviser to Danantara. His work is voluntary and focused on sustainable development. The fund's Chief Investment Officer said the advisers will help manage global risks affecting Indonesia's economy. Danantara plans to start with a $20 billion investment targeting projects in natural resources, artificial intelligence, and food security. However, concerns about the fund's potential political interference have caused stock market declines. Indonesian stocks dropped to their lowest point since August 2021, and the currency weakened as worries over the country's economic health grew. To boost market confidence, Danantara's leaders emphasized their professional background. The fund's directors come from top financial institutions and include experienced executives from the banking sector. Analysts stress that maintaining independence from political influence will be crucial for the fund's success.