Other notable figures include former presidents and seasoned investors.
PUBLISHED: 24 Mar 2025 at 15:51
JAKARTA – The newly established sovereign fund, Danantara Indonesia, has announced the formation of its strategic leadership team, including influential former leaders and prominent advisors such as hedge fund manager Ray Dalio, economist Jeffrey Sachs, and former Prime Minister Thaksin Shinawatra.
Launched last month, Danantara is a critical component of Indonesian President Prabowo Subianto’s ambition to reach an 8% economic growth target by 2029, which involves overseeing shares of state-owned enterprises and reinvesting their dividends into commercial projects.
Set to manage assets exceeding $900 billion, Danantara is being compared to Singapore’s Temasek by officials.
Former Indonesian Presidents Joko Widodo and Susilo Bambang Yudhoyono will serve on the fund’s steering committee, while Dalio and Thaksin assume advisory roles.
Thaksin, a significant and controversial figure in Thai politics, returned to Thailand in 2023 after a lengthy exile due to legal issues surrounding conflicts of interest and power abuse.
Sachs has confirmed his role as special adviser to President Prabowo, stating, “I will serve on the advisory board of Danantara, contributing voluntary efforts to support Indonesia’s sustainable development without any compensation.”
‘A Positive Signal’
Danantara’s initial investment phase of $20 billion will focus on projects in natural resources processing, artificial intelligence development, and bolstering energy and food security. The announcement of Danantara has caused market fluctuations, with analysts noting a selloff in Southeast Asia’s largest economy, contributing to a significant decline in the main stock index last week.
CEO Rosan Roeslani addressed the importance of the appointed figures in fostering market confidence, stating, “The positive reception of these names could signal growth for the Indonesian economy and contribute to job creation.” He further indicated that all state-owned enterprises would now come under Danantara’s management.
Danantara represents Indonesia’s second sovereign wealth fund, following the establishment of the Indonesia Investment Authority, and will operate independently.
