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The rise of the trophy sovereign wealth fund
Everybody wants sovereignty. Everybody wants wealth. Yet, a fund is not, sadly, a reliable route to their creation.
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Indonesia's new sovereign wealth fund Danantara will divert about 0.6 per cent of gross domestic product a year from the state budget to invest in business schemes.
PHOTO: AFP
Robin Harding
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Danantara, the new sovereign wealth fund in Indonesia, is a project of surpassing ambition. Taking possession of US$900 billion (S$1.2 trillion) in public assets, it will divert about 0.6 per cent of gross domestic product a year from the state budget to invest in business schemes such as mines, battery factories and data centres – priorities for President Prabowo Subianto – with almost total freedom over where and how it deploys the capital.
Within a few years, it should become a player in global capital markets. Remember the name: Danantara. You are likely to hear it often.
