Indonesia launches new sovereign wealth fund

Indonesia inaugurated a new sovereign wealth fund worth over $900 billion on Monday, which aims to manage the assets of all state-owned enterprises in the country.

The move comes as President Prabowo Subianto seeks to boost growth in the Southeast Asia's largest economy, according state news agency Antara.

He pledged to raise Indonesia's annual economic growth to 8% from 5%. He also ordered billions of dollars worth of cuts across all government agencies.

The new fund, known as Daya Anagata Nusantara, or Danantara, which is modeled on Singapore's investment arm Temasek, was approved by the parliament this month. It will take control of government holdings in state companies, with an initial budget of $20 billion.

The President said the fund will be used for 10 projects this year in a range of sectors, including renewable energy and food production.

Danantara will be Indonesia's second sovereign wealth fund after the Indonesia Investment Authority (INA), which was launched in 2021 and holds 10.5 billion in assets.

According to presidential secretariat spokesman Yusuf Permana, this event marks a new era in the transformation of strategic investment management in the Southeast Asian country.

It is also part of the government's commitment to realizing a grand vision aimed at elevating Indonesia's economy to a higher level through sustainable and inclusive investments, he added.