Nigel Green, Asia Times – Indonesia has just pulled off something rare in global finance: it has named serious, heavyweight figures to the advisory board of its new US$900 billion sovereign wealth fund, Danantara.

Yet, despite the caliber of the appointments — Ray Dalio, Jeffrey Sachs and others — markets reacted with sharp skepticism. Jakarta’s benchmark index fell by as much as 4.7%. That’s not just a surprising reaction. it’s a mistake.

These appointments should be seen for what they are: an encouraging sign that Indonesia is serious about professionalizing and globalizing its approach to sovereign wealth.

Investors worldwide ought to welcome this development — not recoil from it.

Ray Dalio is one of the most respected investors of our time. Jeffrey Sachs has spent decades advising governments on sustainable development and sustainable economic policy. Both have signed up as unpaid advisors.

This alone speaks volumes about the seriousness of the mission and the stature of the initiative.

It’s a clear sign that Indonesia wants world-class thinking and isn’t afraid to be held accountable by those who operate at the highest level.

The broader message to the world should be clear: Indonesia is not lurching toward autocracy or fiscal recklessness.

It is trying to leapfrog into a new era of strategic state capitalism, where professional management and public interest are not mutually exclusive.

Investors too often demand change but recoil when change looks unfamiliar.

Yes, channeling SOE dividends through a new structure may be unconventional—but the status quo was unsustainable.

For Asia more broadly, this should be a wake-up call. Many countries in the region are sitting on vast pools of state assets — often mismanaged, underleveraged or politicized. They could benefit enormously from bringing in external advisors.

Markets got it wrong this week. They mistook ambition for instability, reform for risk. That’s a costly error.

With proper governance and international collaboration, Danantara could become a blueprint for a new kind of sovereign wealth fund — one that’s invested not just in assets, but in the future.

Source : https://asiatimes.com/2025/03/panicked-investors-should-give-indonesia-a-second-look/