UNAIR NEWS Indonesian President Prabowo Subianto officially launched Daya Anagata Nusantara (Danantara) on Monday, February 24, 2025. Danantara is a state-owned asset management entity operating independently of the State Budget (APBN). Its primary role is to function as a super holding company for state-owned enterprises (BUMN) to maximize national asset utilization.
Commenting on the launch, (UNAIR) Economics professor Prof. Rossanto Dwi Handoyo, SE, MSi, PhD, shared his perspective. He noted that Danantara differs from foreign sovereign wealth funds in its funding structure. 淭he key difference between Singapore and Indonesia is the source of capital. Singapore draws from unused foreign exchange reserves, which are managed and reinvested by Temasek. In contrast, Danantara檚 funds largely stem from efficiency savings within various government ministries budgets, he explained.
Goals and concerns
Prof. Handoyo outlined the potential economic advantages of Danantara, emphasizing its role in fostering investment and helping the government achieve strategic targets without relying on foreign capital. He also pointed out that the institution could accelerate downstream industrial development.
淔or downstream industries, we often rely on foreign investment, which slows progress. With Danantara, we can fund these projects domestically, eliminating the need to wait for external investors, Prof. Handoyo elaborated.
Despite these advantages, he also expressed reservations about Danantara檚 implementation. He warned that diverting budgetary savings to fund this initiative might hinder individual ministries from meeting their own objectives. Additionally, he questioned whether the benefits of Danantara would be equitably distributed among all Indonesians. 淕iven the current economic climate, where we still require significant financial resources to drive growth and other priorities, I believe using APBN funds for this project is not the most prudent decision, he added.
Recommendations
To ensure Danantara fulfills its promise of economic progress, Prof. Handoyo proposed five key criteria. First, the initiative must have a wide-reaching impact on society. Second, it should oversee industries essential to public welfare. Third, the selected industries must be of strategic national importance. Fourth, Danantara should generate jobs that bring in foreign exchange. Finally, it must enhance Indonesia檚 global competitiveness. 淒anantara should avoid investing in sectors already well-established in Indonesia, as that would create unnecessary competition with local businesses, he cautioned.
In conclusion, Prof. Handoyo stressed that the true impact of Danantara would take time to materialize. He underscored the need for rigorous oversight and continuous government evaluation to ensure that the project攆unded through significant budget reallocations攄elivers meaningful benefits to the nation.
Author: Khumairok Nurisofwatin
Editor: Edwin Fatahuddin
