Danantara unveils high-profile leadership, but public confidence remains elusive

Indonesia’s newly established sovereign wealth fund, Daya Anagata Nusantara (Danantara), has had a rocky start in its mission to support national economic growth. Its launch in February triggered a market downturn, highlighting deep public skepticism. On Mar. 24, the government unveiled a high-profile leadership team—featuring former presidents and renowned global financial figures—in an effort to restore public confidence. However, despite the high-profile lineup, the market responded negatively, reflecting persistent doubts about the fund’s credibility and future performance.

Danantara’s powerhouse leadership team comprises more than 40 prominent individuals. Among them are CEO Rosan Roeslani, COO Dony Oskaria, and CIO Pandu Sjahrir. Oversight is provided by a supervisory board that includes Finance Minister Sri Mulyani and SOE Minister Erick Thohir, while the steering committee features former Presidents Joko “Jokowi” Widodo and Susilo Bambang Yudhoyono (SBY). To enhance its global credibility, Danantara’s advisory council includes Bridgewater founder Ray Dalio, economist Jeffrey Sachs, and former Thai Prime Minister Thaksin Shinawatra.

CEO Rosan Roeslani—who concurrently serves as Investment and Downstream Industry Minister—emphasized that the leadership's caliber will ensure strong governance and support the fund’s strategic mission. Danantara, officially established in February 2025, is a key pillar of President Prabowo Subianto’s plan to achieve 8 percent annual GDP growth by 2029. The fund aims to manage state-owned enterprise (SOE) equity and reinvest dividends into high-impact sectors such as downstream industries, artificial intelligence, food security, and energy.

Modelled after Singapore’s Temasek, Danantara aims to eventually manage over US$900 billion in assets, reflecting Indonesia’s growing financial ambitions. Its initial capitalization targets US$20 billion, with participation from seven major SOEs: Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Nasional Indonesia (BNI), electricity company (PLN), energy holding (Pertamina), Telkom Indonesia, and mining holding MIND ID. To operationalize investments, the government transferred Series B and C shares from 14 SOEs to Danantara’s operational entity, PT Biro Klasifikasi Indonesia (BKI), as of Mar. 27, 2025.

When Danantara was officially launched on Feb. 24, the Jakarta Composite Index (JCI) fell by 0.78 percent to 6,749.6 at closing. Hopes were high that the leadership announcement would calm investor nerves. However, when the lineup was revealed on Mar. 24, the JCI dropped further—by 1.55 percent to 6,161.22. It wasn't until the following day, after leadership changes were announced in several state-owned banks (himbara), that investor sentiment began to recover. The positive momentum carried through to Mar. 27, with the JCI climbing to 6,510, hinting at a gradual return to stability.

Deputy Speaker of the House of Representatives, Sufmi Dasco Ahmad noted that President Prabowo is scheduled to meet with capital market investors shortly after the break, signaling hope that the JCI will rebound further after the 2025 Idul Fitri holiday. However, uncertainty looms as markets brace for a possible U.S. trade war announcement by President Donald Trump on Apr. 2, which could exert further downward pressure on the JCI and strengthen the U.S. dollar when Indonesian markets reopen on Apr. 8.