On February 4, 2025, Indonesia amended a law governing its major state-owned enterprises (SOEs), laying the legal framework for a new agency to manage billions of dollars in state assets. Under the new framework, Daya Anagata Nusantara Agency (Danantara) serves as a centralized platform – akin to Singapore’s Temasek – to manage the dividends and investments of several largest SOEs. This approach is expected to improve efficiency, profitability and attract domestic and foreign investments, thereby able to support Prabowo’s economic agenda. The government is expected to introduce regulatory incentives, including tax benefits and streamlined bureaucratic processes.
Danantara will report directly to the President, with supervision from key ministries, including ministry of state-owned enterprises and ministry of finance. With an initial capital allocation of IDR1,000 trillion (USD61 billion), Danantara will manage government stakes in several SOEs, including Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia, PLN (the state electricity company), MIND ID (mining industry holding), Pertamina (the state oil and gas company), and Telkom Indonesia.
With a target of managing USD982 billion by 2029, Danantara attracts foreign investment by offering various engagement opportunities. These could include public-private partnerships in infrastructure, renewable energy and digital transformation projects, or joint ventures in sectors such as mining, telecommunications, and finance, or potential equity stakes in select SOEs. Questions have arisen about the roles Danantara and Indonesia Investment Authority, the sovereign wealth funds under the Finance Ministry, as they could have overlapped management of some state investments in strategic sectors.
