Indonesia’s new sovereign wealth fund Danantara will focus investments on nine sectors over the next year, including food security, artificial intelligence, and water and waste infrastructure, according to a local business news website, citing Pandu Sjahrir, chief investment officer of the wealth fund.
The other sectors are upstream and downstream industrial, manufacturing, digital infrastructure, energy security and real estate.
According to Pandu, the sectors were selected based on their economic impact on the Southeast Asian nation.
“These are some of the sectors that we will activate in the next 12 months. We will immediately start the process, related to finance, and investment,” he is quoted as saying in the report published by the Indonesia Business Post on April 25.
He says Danantara will use indicators such as the multiplier effect on Indonesia’s economy and job creation to evaluate investment opportunities.
Spokespersons for Danantara did not immediately respond to questions from Asia Asset Management.
Launched in February, Danantara is Indonesia’s second wealth fund and 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 first wealth fund, was established in 2021 to invest in infrastructure assets such as toll roads and data centres.
