Indonesian President Prabowo Subianto has ordered sovereign wealth fund Danantara to contribute at least US$50 billion annually to the government.
He said the figure is based on a 5% minimum estimated return on assets from the roughly $1 trillion of state assets managed by the wealth fund.
“A healthy company should ideally generate a return on assets of 10% annually, but the target for Danantara is set lower for now given its early stage of development,” Prabowo said in a speech on March 12 commemorating the wealth fund’s first anniversary.
He said Danantara must set long-term targets and aim for 15% annual return on assets.
Danantara’s mandate is to manage assets owned by the 1,000-plus state-owned enterprises in Indonesia, and to invest in projects that support national development.
