Talking on the fund’s launch on Monday, Prabowo stated Danantara would handle greater than US$900 billion price of property drawn from state-owned enterprises (SOEs). Touting its impression, he added that the fund would assist raise annual financial development from 5 per cent to eight per cent inside his five-year time period.
With its large asset base, Danantara would rank because the world’s fourth-largest sovereign wealth fund, surpassing these of Saudi Arabia and Singapore.
Not like Saudi Arabia and Singapore, nevertheless, Indonesia has constantly recorded a funds deficit, in line with analysts. Whereas Prabowo referred to as the proposed funding of Danantara by way of a switch of SOE property an “environment friendly answer”, analysts have warned about potential transparency points and mismanagement.
Final month, student-led protests erupted throughout Indonesia after Prabowo introduced sweeping austerity measures, redirecting billions from the state funds to Danantara and his different flagship programmes, together with a free-meal scheme for schoolchildren and anticipating moms projected to value US$28 billion yearly.
