Australia will facilitate cooperation between Future Fund, the country’s sovereign wealth fund, and Indonesian wealth fund Danantara.
The move is part of a package of deals struck during Australian Prime Minister Anthony Albanese’s visit to Indonesia following his election victory this month. They include a A$100 million (US$64 million) commitment by Australia to strengthen Indonesia’s health system, and A$50 million to fund green infrastructure projects in the Southeast Asian country.
Future Fund will support Danantara’s entry into the International Forum of Sovereign Wealth Funds and invite the Indonesian wealth fund to conduct an investment roadshow in Australia, Albanese says in a statement on May 15.
Future Fund is a member of the international group of sovereign wealth funds, which started off as a working group that created the so-called Santiago Principles - globally accepted standards for governance and risk management practice for wealth funds.
The Future Fund manages money on behalf of the Australian government. Founded in 2006, the fund had A$240.8 billion of assets under management as of end-March.
Danantara is Indonesia’s second wealth fund. Launched in February, it’s President Prabowo Subianto's main vehicle to achieve his 8% economic growth target within four years by managing shares of state-owned enterprises and reinvesting the dividends in commercial projects. It’s often described as Indonesia’s version of Singapore’s state investment company Temasek Holdings.
Indonesia Investment Authority, the country’s first wealth fund, was established in 2021 to invest in infrastructure assets such as toll roads and data centres.