The Danantara investment fund will begin deploying Rp165.3 trillion (USD 10 billion) in capital starting in October 2025. According to Chief Investment Officer Pandu Patria Sjahrir, 80 percent of the fund will be allocated to domestic projects, while the remaining portion will support international ventures. This major investment marks the first time Danantara channels its capital since the sovereign wealth fund was formed, signaling a bold step for Indonesia’s economic transformation.
Danantara Investment Fund Kicks Off Rp165T Capital Plan
The Danantara Investment Fund’s initial deployment equals half of the sovereign wealth fund’s total starting capital of USD 20 billion. This fund was created to manage state assets professionally and transparently while supporting national economic growth. Pandu highlighted the urgency of this initial push, saying, “This month is the first time we are deploying capital. In just the first three months, we must invest close to USD 10 billion.”
The planned allocation reflects Indonesia’s dual strategy: strengthening domestic industries while pursuing international growth opportunities. By committing most of its resources to domestic projects, Danantara aims to support national strategic initiatives while also entering select overseas markets.
Strategic Projects at Home and Abroad
Several early projects highlight the scope of Danantara’s ambitions. Internationally, the fund will finance the construction of a Hajj village in Saudi Arabia, aimed at supporting Indonesian pilgrims. Domestically, Danantara is partnering with Pertamina in an upstream energy venture. The fund will also finance a waste-to-energy power plant project, scheduled to begin construction by the end of this year.
These initiatives are designed to strengthen food and energy security while diversifying investment portfolios. The mix of international and domestic projects reflects Danantara’s long-term vision of balancing global partnerships with local priorities. Each project is positioned to deliver economic value while advancing Indonesia’s development agenda.
ESG Principles Shape Danantara Investment Fund Strategy
The Danantara Investment Fund integrates environmental, social, and governance (ESG) principles into its investment process. Over the next two years, Danantara plans to focus on renewable energy, food security, healthcare, real estate, digital infrastructure, and financial services. These sectors are not only strategic for Indonesia’s future but also align with global investor expectations.
By applying ESG principles, Danantara hopes to attract significant foreign capital. Its efforts also aim to pave the way for full membership in the International Forum of Sovereign Wealth Funds. Beyond that, Danantara intends to launch new funds or investment platforms in the coming months, creating broader opportunities for growth.
Pandu emphasized Indonesia’s appeal, noting, “Indonesia remains one of the world’s best-kept secrets for investors, thanks to strong growth, low inflation, and a young population. It is one of the few places offering not only high returns but also strong security.” His remarks underline the country’s potential to draw sustained international interest.
Indonesia’s Investment Landscape and Global Positioning
Indonesia offers a favorable investment climate, but its capital markets still face challenges. On average, daily stock trading in Indonesia totals around USD 1 billion, significantly lower than India’s USD 10–11 billion daily transactions. Expanding liquidity in the Indonesian market is one of Danantara’s additional goals.
The state-owned enterprise portfolios managed by Danantara already contribute about one-third of the domestic market’s total value. According to Pandu, “We need a very strong public market for the private market to enter because the public market is where you recycle that capital.” His statement reflects the broader aim of building stronger financial markets that can sustain private investment and long-term growth.
Strengthening Indonesia’s Global Investment Role
Danantara’s Rp165 trillion deployment marks a decisive step in shaping Indonesia’s investment future. By prioritizing ESG-driven strategies and expanding into both domestic and international projects, the fund strengthens Indonesia’s profile on the global stage. These moves are expected to attract more foreign investors, boost market liquidity, and reinforce Indonesia’s long-term economic resilience.
As Danantara balances global expansion with national priorities, it positions itself as both a driver of domestic development and a bridge to international capital markets. This dual role not only supports Indonesia’s competitiveness but also ensures the fund contributes to sustainable, long-term economic growth.
Source: tirto.id
Image: Antara/Dhemas Reviyant
