Speaking at a public forum in Jakarta on Friday, Danantara’s Director of Global Relations and Governance, Mohamad Al-Arief, stated that Indonesia is currently at a critical stage of aligning national wealth management with international standards rooted in integrity and transparency.
“We are not merely establishing an agency to manage funds or assets but also setting up a trusted institution. Therefore, every process must reflect globally recognized best practices,” he stated.
Drawing insights from various sovereign wealth funds (SWFs) around the world, Al-Arief emphasized that these lessons have shaped Danantara's institutional design, especially in areas such as decision-making structures, oversight functions, and public transparency -- all essential components of modern governance.
“When we talk about governance, it is not just about producing clean financial reports but also about decision-making structures, independent oversight, and prioritizing the real impact on communities,” he remarked.
As a state asset manager operating under a direct mandate from the president, Danantara is currently undergoing a long-term transformation.
Key initiatives include the consolidation of state-owned entities (SOEs), strengthening performance evaluation systems, and streamlining incentive and oversight structures -- all intended to build a more robust and efficient institution.
Danantara also stressed the importance of shared awareness that Indonesia must reinforce institutional credibility to ensure the sustainability of long-term investments.
Its investment strategy focuses on sectors with multiplier effects for the community, such as industrial downstreaming, renewable energy, digital infrastructure, health care, and food security.
“Economic development must reach all levels of society. Investment should create business opportunities, expand access to employment, education, and health care, and ensure the equitable distribution of benefits,” Al-Arief stated.
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Translator: Bayu Saputra, Kuntum Khaira Riswan
Editor: Primayanti
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