Indonesia’s new sovereign wealth fund is making the country a global economic powerhouse

Indonesia is embarking on an ambitious transformation path towards the year 2045, coinciding with its century of independence.  

Under the grand vision of Indonesia Emas 2045 (Golden Indonesia 2045), the government targets Indonesia to become a developed country with an advanced, sustainable and innovation-based economy.  

To drive long-term national development, Danantara is a key economic actor in managing the country's strategic investments, said its Managing Director of Finance & Holding Investment, Djamal Attamimi. 

"We aim to position Indonesia as a global economic powerhouse with a focus on bringing prosperity and wealth to the people," said Attamimi in his Government Keynote at the SAP Innovation Day for SOEs: Ushering Golden Indonesia 2045 event, in Jakarta recently.  

Danantara is Indonesia's new sovereign wealth fund established by President Prabowo Subianto in February 2025 with a mandate to manage Indonesia's largest State-Owned Enterprises (SOEs) assets, totalling US$980 billion.

This includes SOEs like Bank Negara Indonesia, Bank Mandiri, Bank Rakyat Indonesia, Telkom, Pertamina, Perusahaan Listrik Negara, and MIND ID, that comprises about 71.48 per cent of Indonesia’s annual GDP (US$1.37 trillion). 

"We take on the responsibility of being more than just a fund manager, but also how we mobilise capital, manage SOEs, and deliver impact to our people," he added.  

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Danantara's dual structure  

According to Attamimi, Danantara adopts a dual structure that differentiates it from conventional state financial institutions. This structure consists of both Operation Holdings and Investment Holdings with complementary functions.  

Danantara’s Operation Holdings focuses on consolidating and improving the performance of SOEs to make them more efficient and globally competitive.  

With strong governance and purposeful business transformation, these entities are tasked with creating more world-class companies from Indonesia, driving high dividend yields, and strengthening SOEs' position in the global ecosystem, said Attamimi.  

"Our goal is to get more Indonesian SOEs in Fortune's Global top 500 companies."  

Danantara’s Investment Holdings, on the other hand, plays a strategic role in making long-term investments in priority sectors.  

This approach not only targets return on investment but also returns on national development and social capital, said Attamimi.  

"The synergy between these two structures creates a sustainable cycle: dividends from SOEs are used as capital blocks for strategic investments in future economic sectors," he added. 

This capital block could also be activated by Danantara as a catalyst for new projects, particularly those sectors that are still less favourable due to high risk or initial infrastructure limitations.

Danantara will open up space for private and foreign investors to join, he added.   

Digital technology as the foundation of transformation   

Attamimi highlighted Danantara's strategy in terms of technology adoption, which is seen as "not just a tool" but "the main foundation of the entire transformation process" to improve efficiency, business processes, and delivering impact.  

Danantara's investment priorities will be directed towards sectors that drive national digital transformation, including telecommunications infrastructure, smart industrial parks, digital public service platforms, green technology, and renewable energy.   

"These investments are more than financial – they are strategic levers to ensure our SOEs are aligned with Indonesia’s digital roadmap, and can compete confidently on the global stage," he said. 

Danantara would also open cross-border investment opportunities to gain access to technologies that are not yet available in the country.

"From what we have learnt in the last 30-40 years, technology ownership is key ... Sometimes we must look at what is outside our country and bring it here to create benefits for all of us," Attamimi added. 

Collaboration to achieve the goal of a Golden Indonesia 2045 

Attamimi emphasised that all these efforts will succeed through collaboration, and a sense of purpose among the country's leaders.   

"These goals require visionary leadership, courageous decision-making, and collaboration between the private sector and government." 

As a catalyst for the country’s economic transformation, Danantara requires strong institutional capacity.  

To that end, Danantara is staffed by a team of government leaders and experienced professionals from both major SOEs and international institutions such as McKinsey, World Bank’s International Finance Corporation, and Goldman Sachs.

Danantara's organisational structure is also designed with Environmental, Social, Governance (ESG) principles and data-driven decision-making in mind said Attamimi  

This is to ensure that every investment decision is based on transparent governance, rigorous risk mitigation, and high public accountability.