Latest news with #Danantara
CNA
3 days ago
- Business
- CNA
Indonesia's new sovereign fund to boost state-owned enterprise assets, forge global ties: CIO
JAKARTA: Indonesia's second sovereign wealth fund, Danantara Indonesia, is positioning itself as a catalyst for transforming state-owned enterprises (SOEs) into competitive entities, while drawing in foreign partnerships, its chief investment officer Pandu Patria Sjahrir told CNA. The new sovereign fund was launched on Feb 24 to manage the assets of all state-owned enterprises in the country worth more than US$900 billion. It is Indonesian President Prabowo Subianto's main vehicle to achieve his 8 per cent economic growth target by 2029. At the launch, Prabowo said Indonesia is ready to collaborate with both local and foreign partners to make Danantara a success story. He added that the fund is a step towards bringing Indonesia to a developed country status. Its creation, though, has sparked both optimism and skepticism. Prior to the launch, some had raised concerns about transparency and potential political interference as it was unclear how Danantara would be audited. But Prabowo has pledged transparency in the fund's management, saying it could be audited anytime by anyone. TRANSPARENCY CONCERNS 'We can't have politicians within the ecosystem. So, it has to be fully professional,' said Pandu, adding that the fund plans to hire the best people. 'We can hire not just Indonesians, but outside of Indonesia.' Danantara is Indonesia's second sovereign fund, after the Indonesia Investment Authority (INA). Pandu said the market and the opportunities available are more than sufficient for Southeast Asia's biggest economy to set up the additional fund. 'We can actually have at least two,' he noted, pointing to other countries in Southeast Asia and the Middle East that maintain multiple funds. 'We're actually complementary to one another, our focus (is) really on optimising the state-owned enterprise assets and also on creating large businesses,' Pandu added. 'What INA does very well is doing partnership businesses. So in my view, there's so much opportunity between the two of us, and it's fine. 'You can choose partnership with INA, you can choose partnership with us, depending on, obviously, your risk parameters and the size you want to invest in.' Indonesia's SOEs are projected to generate 300 trillion rupiah (US$18.5 billion) in dividends for 2025. TARGETING STRATEGIC SECTORS Dividends from SOEs will be reinvested into strategic sectors instead of directly returning to state coffers. On whether there is a potential risk of wasting valuable investment capital if an SOE being rescued continues to record losses, such as Garuda Indonesia, Pandu said the idea is to accelerate the distressed flag carrier's long-term transformation. Danantara has recently extended a US$405 million loan to Garuda. 'We're actually very excited about the prospect because the wonderful thing about Indonesia, even the domestic market, is that it is so large and underpenetrated, and there's so much demand domestically as well,' he added. 'We want to be able to have more foreigners come to visit and see how wonderful Indonesia is, and the best way to do it is actually through the airline business.' Danantara is prioritising investments in key sectors such as digital infrastructure, healthcare and food and energy security, said Pandu, a seasoned investor and entrepreneur in the region. 'In each of these sectors, we need to create, in a way, a global mindset, large size companies,' he added. 'So, we will invest with partners. And I think a lot of what we do we will do through partnership that can bring know-how.' During his state visit to Singapore earlier this month, President Prabowo said he looked forward to close collaboration between Danantara and Singapore's Temasek Holdings, particularly in renewable energy and sustainable industrial zones. 'We're open,' said Pandu. 'We already know the style of investing. So, I think that will be a straightforward collaboration.'
The Sun
3 days ago
- Politics
- The Sun
Anwar and Prabowo friendship strengthens Malaysia-Indonesia ties
KUALA LUMPUR: The strong friendship between Malaysian Prime Minister Datuk Seri Anwar Ibrahim and Indonesian President Prabowo Subianto is reshaping regional diplomacy, blending personal rapport with strategic cooperation. Datuk Seri Shamsul Iskandar Mohd Akin, the Prime Minister's senior political secretary, highlighted how their bond transcends formal politics, offering a model of progressive leadership rooted in shared struggles and mutual respect. 'History shows both leaders overcame significant challenges,' Shamsul Iskandar said. 'Anwar's reformist journey included imprisonment before his rise as PM, while Prabowo rebuilt his career post-military discharge to win the presidency.' Their connection deepened when Anwar, shortly after his 2004 prison release, was invited to Jakarta for lectures titled *Anwar Sahabat Sejati* (Anwar, a True Friend). This event, Shamsul Iskandar noted, reflected Indonesians' admiration for Anwar's values of justice and friendship. The leaders' relatable demeanours—captured in viral images of warm interactions—resonate with younger generations. Anwar's formal Malay and Prabowo's modern social media presence bridge traditional politics with digital-era engagement. Their partnership has spurred tangible bilateral progress, including economic collaboration, food security, and migrant worker protections. A notable moment was Prabowo's informal Kuala Lumpur visit just to share lunch with Anwar, underscoring their genuine trust. Policies under both leaders reflect long-term visions: Prabowo's free meals programme and Danantara sovereign fund mirror Anwar's MADANI framework prioritising institutional reform and social justice. Shamsul Iskandar drew parallels to historic Malaysia-Indonesia ties, like Tunku Abdul Rahman and Soekarno's early camaraderie, hoping the Anwar-Prabowo era avoids past tensions. Grassroots collaborations, such as between youth groups AMK and GPND, further solidify people-to-people diplomacy. 'Youth involvement ensures future cooperation extends beyond elites,' he said, citing GPND's optimism about cross-border projects. Anwar's ongoing Indonesia visit, featuring youth dialogues, reinforces this inclusive approach. Concluding, Shamsul Iskandar framed Anwar and Prabowo as symbols of resilience and cultural kinship, proving politics can thrive on sincerity—a legacy now carried by engaged youth.
Business Times
4 days ago
- Business
- Business Times
Indonesia's sovereign wealth fund looks to invest abroad, with sights set on energy assets
[JAKARTA] Indonesia's sovereign wealth fund, Daya Anagata Nusantara (Danantara), is exploring global investment opportunities as part of its strategy to strengthen the country's position in the international market. And one potential target, said its chief investment officer (CIO), is the energy sector in the United States. Speaking at the Asia Economic Summit in Jakarta on Thursday (Jun 26), Pandu Sjahrir emphasised that any overseas investment must deliver strategic value to Indonesia, particularly through technology transfer and capacity-building. 'We can invest anywhere in the world, but if it's outside Indonesia, there must be a clear strategic benefit, whether it's knowledge transfer, technology access, or strengthening Indonesia's role in the global value chain,' he said. He pointed to the energy sector as an example, noting that Indonesia still imports a significant amount of crude oil from the United States. 'So why not own a foreign oil company and buy from ourselves? That could be a strategic move to support our energy security.' Danantara manages US$900 billion in assets and oversees around 50 state-owned enterprises (SOEs) along with more than 800 subsidiaries. The sovereign wealth fund views global expansion as a key strategy for scaling up and enhancing the competitiveness of Indonesian SOEs, said Sjahrir. ' We can invest anywhere in the world, but if it's outside Indonesia, there must be a clear strategic benefit, whether it's knowledge transfer, technology access, or strengthening Indonesia's role in the global value chain. ' — Pandu Sjahrir, CIO of Danantara Its CEO, Rosan Roeslani, indicated earlier this month that Danantara planned to allocate up to 20 per cent of its capital to overseas investments, signalling a tactic to capture global assets that align with Indonesian interests. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up In a recent move reflecting this, the fund played a key role in supporting state-owned energy giant Pertamina's acquisition of a 20 per cent stake in Citicore Renewable Energy Corporation, a Philippine renewable energy company, in a transaction valued at US$120 million. Sjahrir described it as a strategic investment for Pertamina to strengthen its presence in the global oil sector. More global talent During the panel, the CIO noted that while Danantara continued to prioritise domestic investments, it also recognised the importance of international opportunities to achieve long-term goals – particularly amid increasing global competition for talent and advanced technologies. 'This is also about human capital development. One of our top priorities is to boost productivity per capita, and that's not possible without knowledge transfer from abroad,' he added. Danantara has already begun hiring international talent for key positions within the organisation. This move, Sjahrir said, is aimed at accelerating capacity-building and improving the operational efficiency of the companies under its management. Recently, the fund invited Sunata Tjiterosampurno, managing director and co-CIO at Northstar Group – which is a private equity firm and early backer of Gojek – to join. The fund also plans to recruit foreign talent to support its flagship airline, Garuda Indonesia, to which it recently extended a US$405 million capital loan. 'We now have a double-digit number of foreign talents working within Danantara. Depending on their roles, they contribute valuable expertise and help with knowledge transfer,' Sjahrir said.
Nikkei Asia
4 days ago
- Business
- Nikkei Asia
Indonesia wealth funds to double down on energy transition
Energy INA to boost renewables portfolio; Danantara eyes power grid investment Ridha Wirakusumah, CEO of Indonesia Investment Authority, left, and Pandu Sjahrir, chief investment officer of Danantara, speak at the FT & Nikkei Energy Transition Summit: Asia in Jakarta on June 25. (Photos by Dimas Ardian) ISMI DAMAYANTI JAKARTA -- Senior executives at Indonesia's two sovereign wealth funds on Wednesday said they will expand investment in clean energy transition projects this year, citing plans ranging from electric vehicle supply chains to power grid upgrades. Ridha Wirakusumah, CEO of the Indonesia Investment Authority, or INA, said renewable energy projects currently make up 12% of its $4 billion investment portfolio. INA is aiming to increase that proportion to between 15% and 20% by the end of 2025.
Forbes
5 days ago
- Business
- Forbes
Billionaire Chairul Tanjung-Backed Garuda Indonesia Gets $408 Million Loan From Danantara
Garuda Indonesia aircraft outside a hangar at the company's maintenance facility at Soekarno-Hatta ... More International Airport in Cengkareng, Indonesia, on Thursday, June 30, 2022. Photographer: Dimas Ardian/Bloomberg Garuda Indonesia received a 6.65 trillion rupiah ($408 million) loan from the country's sovereign wealth fund, Danantara Indonesia, to help support the turnaround of the cash-strapped flag carrier. The loan that will be disbursed by Danantara Asset Management is part of a $1 billion financing package that will help support Garuda's recovery, and fund the maintenance, repair, and overhaul of the airline's fleet, according to a statement released on Tuesday. 'With the support of Danantara Indonesia, Garuda Indonesia projects the strengthening of operational capabilities through business and performance optimization, so that it can strengthen Garuda Indonesia's position as a world-class airline,' Wamildan Tsani, president director of Garuda said in the statement. In a separate filing to the Indonesia Stock Exchange, Garuda said that 4.8 trillion rupiah ($294 million)—over 70% of the loan—will be allocated to Citilink, to support maintenance of the low-cost carrier's fleet and ensure the planes are operationally ready. Garuda—which is jointly owned by the government (whose stake has been transferred to Danantara) and billionaire Chairul Tanjung—has struggled with debt and financial problems for years. In 2023, it restructured $10 billion in debt but still needed government support to stay afloat. The airline's revenue rose 16% to $3.4 billion last year, but it still ended the year with a $69 million net loss, compared with a $252 million net profit the previous year. The airline, which operated 139 planes and served over 23 million passengers last year, appointed Tsani—a former top executive at rival Lion Air—as its new CEO last November, in an effort to turn around the loss-making company. Tanjung, who controls the diversified CT Corp., has an estimated net worth of $4.3 billion, according to Forbes' real-time data. Through his company Trans Airways and a small direct stake, Tanjung holds an 8% combined stake in Garuda. CT Corp. is best known for its credit card business, hypermarkets and TV station ownership. The conglomerate also controls Allo Bank Indonesia, one of the country's largest digital banks.
