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Indonesia’s Danantara: Sovereign wealth or sovereign risk?
The troubling opaqueness of Indonesia’s new ‘superholding’.
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Mr Rosan Roeslani (right) plays a “dual-hat” role as Minister of Investment and Danantara chief executive officer.
PHOTO: BT FILE
Dipo Satria Ramli
Jakarta is betting its investment-grade future on a US$900 billion (S$1.14 trillion) “black box”. As global oil prices squeeze Indonesia’s fiscal ceiling, President Prabowo Subianto has accelerated a strategy of “State Capitalism 2.0”. At its heart is Danantara, a “superholding” designed to consolidate strategic assets, equivalent to roughly 60 per cent of the country’s gross domestic product (GDP), into a single engine of national survival.
The sovereign wealth fund now owns and supervises state-owned enterprises in fields ranging from banking to telecommunications and oil and gas with total assets under management exceeding US$900 billion.
