Indonesia to shift USD61bn in state assets to new investment fund

Indonesia plans to transfer at least USD61bn in state assets into a new investment fund, Daya Anagata Nusantara (Danantara), which will report directly to President Prabowo Subianto, according to draft legislation seen by Bloomberg. The fund will oversee dividends from state-owned enterprises, manage capital injections, and lead restructuring efforts, assuming some authority from the SOE ministry. Lawmakers are expected to pass the amendments this week, with Prabowo’s supermajority backing ensuring its approval. The fund, central to Prabowo’s economic agenda, aims to attract investment, boost manufacturing, and support consumer spending, including funding a free school lunch program. Danantara will initially manage IDR1,000tr (USD83.1bn) in assets and will have flexibility in investment decisions, with profits partly returned to the state after covering reserves.