Danantara Redefines How Indonesia Funds SOEs
“Indonesia’s sovereign wealth fund Danantara is reshaping how the nation funds its state-owned enterprises (SOEs), shifting away from traditional state budget injections toward a profit-driven model. This year, Danantara will manage Rp150 trillion ($9.2 billion) in dividends from SOEs – funds that will be reinvested into strategic sectors instead of flowing directly into the state coffers.”
“Danantara, launched earlier this year as Indonesia’s sovereign investment authority, is tasked with optimizing state capital and SOE returns. The agency is designed to function like Singapore’s Temasek or Malaysia’s Khazanah, with a focus on recycling capital and attracting foreign co-investment.”
” ‘Previously, dividends went straight into the treasury. Now, we can reinvest them into sectors that generate quality jobs,’ Rosan said. He added that Danantara aims to multiply investment impact up to five times through co-financing schemes with private and global partners.”
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