Indonesian sovereign wealth fund Danantara is launching a trust focusing on corporate social responsibility programmes aimed at improving the lives of underserved communities, with initial capital of US$100 million.
The Danantara Trust Fund will receive annual allocation equivalent to 1%-2.5% of Danantara’s investment returns, Rosan Roeslani, chief executive officer of the wealth fund, said at a press conference on May 16.
“Danantara Trust Fund will focus on education, awareness and sanitation to improve the quality of life for Indonesians, particularly those in need,” he said.
According to Rosan, Danantara has initiated discussions with global philanthropist Bill Gates to collaborate on the trust fund. Gates, co-founder of technology giant Microsoft, was in Jakarta recently and visited President Prabowo Subianto, and was offered a seat on the advisory board of Danantara.
Launched in February, Danantara is Indonesia’s second wealth fund and Prabowo’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.
