Indonesia has officially consolidated its state-owned enterprises (SOEs) under the newly established sovereign wealth fund, Danantara. This significant move integrates 844 parent companies and subsidiaries, previously managed by the Ministry of State-Owned Enterprises, into a super-holding company overseeing approximately $900 billion in public assets.
Danantara operates through a two-pronged approach: an operational holding responsible for improving effective operations of SOEs, and an investment holding focused on strategic investments. Dividends that were previously directed to the Ministry of Finance will now be reinvested by Danantara to bolster company expansion. An initial allocation of $20 billion is set to fund 20 strategic projects, including critical minerals, AI and data centers, food security, renewable energy and aquaculture industries.
On May 9, the USABC hosted a roundtable with Danantara Chief of Investment, Pandu Sjahrir in Washington, D.C., which elaborated key transformation programs including financial and business restructuring, scale up, governance alignment, and establishment of criteria for non-privatized SOEs. Initial investment plans comprise investment in the critical sectors (e.g., food, energy, healthcare, downstreaming), green industrial transition, high-skill jobs and alternative financing – all of which highlights opportunities for partnership that contributes to Indonesia’s economic development. The presentation slides are attached, exclusively for USABC members.
