Jakarta – Indonesian President Prabowo Subianto said the launch of sovereign wealth fund (SWF) Danantara proves that Indonesia is not just a follower, but a pioneer of the world economy.

According to him, the existence of Danantara is a strategic and efficient solution in optimising state-owned enterprises to provide investment in a number of industries that drive long-term growth.

‘But (Danantara) will also transform our SOEs into world-class leaders in their respective sectors,’ Mr Prabowo said in his remarks at the launch of Danantara at the Presidential Palace Complex, Jakarta, Monday (24/2).

Through Danantara, Prabowo wants to see more state-owned companies become more competitive, professional and integrated in the global economy.

‘We want to see more SOEs included in the Global Fortune 500 list, proving that Indonesia is not just a follower, but Indonesia can also be a pioneer and leader in the world economy,’ he said.

Prabowo revealed that the first wave of investment will be worth US$20 billion in around 20 strategic projects that focus on downstream nickel boksit, copper, data centre development, artificial intelligence, petrochemical plant oil refineries, food and protein production, aqua culture and renewable energy.

‘These are the sectors that will determine our future, our resilience, and our nation’s independence,’ Prabowo said.

The establishment of Danantara, he continued, marks a new era for SOEs, which are not just business entities but national assets that will become fundamental agents of development and growth for economic growth and people’s welfare.

‘Therefore, SOEs must operate with high standards, the best governance. SOEs must prioritise innovation, big ideas, transparency, technological advances while maintaining discipline, prudence and commitment to good governance and responsible management,’ he added. (RR)