In his remarks, President Prabowo Subianto views Danantara, an SOEs superholding, as a strategic and efficient means to optimize these enterprises through long-term investments using company dividends.
"We want to see more Indonesian SOEs included in the Global Fortune 500 list. Indonesia can become a pioneer and leader in the world economy," he stated at Danantara's launch at the Presidential Palace on Monday.
He noted that Danantara's formation marks a new era for SOEs, which are regarded not just as business entities but as national assets.
Through Danantara, SOEs will serve as agents of economic development and fundamental growth, contributing to both economic expansion and the people's welfare. Hence, Danantara will apply the principle of prudence and responsible fund management, Prabowo emphasized.
"SOEs must operate with high standards, good governance, prioritize innovation, big ideas, transparency, and technological progress, while maintaining discipline, prudence, and commitment to good governance and responsible management," the president highlighted.
Danantara, as Indonesia's sovereign wealth fund, will manage assets worth more than USD900 billion, with an initial fund projection of USD20 billion.
Prabowo highlighted that the first batch of investment worth USD20 billion will prioritize 20 strategic projects, including downstream processing of nickel, bauxite, and copper, as well as initiatives for data center construction, artificial intelligence, oil refineries, petrochemical plants, food and protein production, and aquaculture and renewable energy.
The head of state hopes Danantara can accommodate strategic partnerships between SOEs, the private sector, and MSMEs in infrastructure projects, renewable energy, and education.
"This will position Indonesia as a major player at the global level, as well as contribute to regional and global prosperity and stability," Prabowo remarked.
Danantara is led by Rosan Roeslani as group CEO where Dony Oskaria leads the operations sector and Pandu Sjahir in the investment sector.
Related news: Roeslani to lead Danantara with Pandu Sjahrir, Dony Oskaria assisting
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Translator: Mentari Dwi G, Resinta Sulistiyandari
Editor: Rahmad Nasution
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