Danantara Indonesia: Building Indonesia’s economy as a stable investment destination

Foreign investment plays a critical role in advancing Indonesia’s economic development. The inflow of international capital brings a range of positive impacts, including increased financial resources, technology and knowledge transfer, job creation, and improvements in infrastructure quality.

To fully reap the sweet harvest of these benefits, the government, alongside the private sector, must ensure that Indonesia is perceived as a reliable and attractive destination for investment. A stable and conducive investment climate remains one of the key factors investors consider when deciding where to allocate their capital.

Over the past five years, Indonesia has shown a positive trend in FDI (Foreign Direct Investment). In the first quarter of 2020, inward FDI reached Rp98 trillion, rising steadily to Rp230 trillion by the first quarter of 2025—an impressive growth of 134%.

Along with these stellar achievements, the Indonesian government continues to strengthen investor confidence to meet its target of 8% annual economic growth as part of the Golden Indonesia 2045 vision. One major step taken is the establishment of the sovereign wealth fund Danantara (Daya Anagata Nusantara). 

Beyond optimizing Indonesia’s outbound investments, Danantara aims to attract global investors into the country and enhance Indonesia’s global competitiveness by collaborating with the domestic private sector.

At East Ventures Summit 2025, we had the opportunity to hear the vision of Danantara from Pandu Sjahrir, Chief Investment Officer of Danantara.

How sovereign wealth funds enhance investment stability 

President Prabowo Subianto has outlined a strategic vision for Danantara, ushering in a new chapter for Indonesia’s sovereign wealth fund. The concept, originally envisioned by Professor Soemitro Djojohadikoesoemo in the early 1970s, aimed to establish a holding company to manage all state-owned assets under one institution. 

Established in February 2024, Danantara Indonesia is tasked with managing and optimizing the portfolios of SOEs’ (state-owned enterprises) assets of more than Rp10,000 trillion. Its mandate is to channel these assets into long-term strategic investments that align with Indonesia’s economic priorities.

To optimally manage its large assets, Danantara has established two internal divisions: operational and investment holdings. The operational holding, led by Dony Askaria, focuses on overseeing the operations of SOEs, managing all owned assets more efficiently, and implementing good governance practices.

“As an operating holding, we want to build a global champion company. Today, there are about 845 different companies that have been novated to Danantara, and our job is to streamline that business. The focus is optimization and efficiency, maximizing dividends, and becoming a Global Fortune 500,” Pandu Sjahrir, Chief Investment Officer of Danantara, explained.

Ultimately, Danantara aims to become a capital orchestrator, enabling investment in strategic sectors with ensured efficiency. A restructuring is underway, where Danantara plans to execute business transformation to create value and risk management practices for Indonesia’s SOEs, including enhancing operational efficiency and strengthening SOE holdings.

On the other hand, the main responsibility of the investment holding—led by Pandu Sjahrir himself—is to reinvest the dividends generated by the managed companies and to boost Indonesia’s overall economic growth.

Danantara Indonesia has categorized several asset classes for investment to maximize returns. These asset classes include renewable energy and utilities, healthcare, digital infrastructure, transportation, food, and agriculture.

Property or real estate is also one of the key asset classes in Danantara’s investment portfolio, as it offers significant return potential.

“Danantara Indonesia’s strategic objective is to create economic growth through investment, job creation, risk management, and investment return. And we have to work with the private sector. We will partner with global investors and foster innovation,” Pandu added.

Indonesia’s sovereign wealth funding will go through four transformative phases: assessing business fundamentals, streamlining the organization, implementing strategy, and creating long-term value. These stages are designed to accommodate the objectives of both holdings.

“For the first year, a lot of the focus will be more on brownfield (an existing and mature business asset). If there is a greenfield (an early-stage business) element to it, we are going to be more risk-averse.” Pandu said.

Despite being newly established, Danantara has already made significant progress. In April 2025, they completed a US$4 billion joint investment fund with the QIA (Qatar Investment Authority). The fund will focus on strategic sectors such as downstream mineral processing, renewable energy, food security, healthcare, and digital infrastructure in Indonesia.

Beyond foreign partnerships, the Indonesian government also seeks to involve the domestic private sector to strengthen the investment climate. Danantara aims to work hand-in-hand with local businesses that bring sector-specific expertise to help drive industrial growth and create high-value jobs.

“Collaboration with private sectors across the industry means we act as financiers and local partners–providing capital and support, while you build the value with that investment,” Pandu emphasized.

Perspective from the private sector and the opportunities

For the private sector, the existence of Danantara Indonesia presents a golden opportunity to forge strategic partnerships across key national priority sectors such as food security, renewable energy, healthcare, and digital infrastructure. 

Danantara Indonesia operates with a collaborative approach that aims to strengthen and empower the private sector by providing local support that enables companies to execute large-scale projects.

As one of the key players in the private sector, Sinar Mas GAR (Golden Agri-Resources) sees significant long-term potential in Indonesia’s evolving investment landscape, particularly in sectors aligned with national priorities. The company remains focused on areas where it has deep operational strength—notably food security, sustainable agriculture, and downstream agribusiness development.

“We encourage building digital capabilities within our businesses, but we also look outward. The company will seek out solutions that help drive transformation, increase efficiency, and even disrupt existing business models,” Jesslyne Widjaja, Executive Director of Golden-Agri Resources, stated.

Technology adoption is increasingly seen as a necessity rather than a choice. Large corporations like Sinar Mas focus on strengthening their core sectors—agribusiness, property, manufacturing, and financial technology—while actively exploring adjacent and downstream opportunities that drive long-term value creation.

By embracing collaboration with all stakeholders, the Indonesian government is fostering a healthy investment climate that attracts foreign investors. Danantara’s responsibility to generate a return on investments made abroad is equally important to ensure that international capital outflows yield meaningful returns for the nation.

“Our job is focused on investments—not just domestic, but global as well. Every single global investment must bring either technological advancement, knowledge, or know-how back to Indonesia,” Pandu said.

To build a sustainable and large-scale business, a company must look beyond profit. It needs to have a greater purpose that goes deeper than just financial gain. This is why trust towards employees, stakeholders, and customers is essential for the private sector. 

Operational excellence is also a critical foundation for scaling and growing a resilient business. Then, adaptability and innovation are key to navigating rapid changes and staying competitive in a fast-evolving landscape.

“We think having a purpose-driven business is also important. Because by having a purpose is the way you can attract talent, partners, customers into your business and have a long-term sustainable business,” Jesslyne added.

These strategic insights were further highlighted during the East Ventures Summit 2025, where a panel discussion featured Pandu Sjahrir, Chief Investment Officer of Danantara, and Jesslyne Widjaja, Executive Director of Golden Agri Resources. The session was moderated by Willson Cuaca, Co-Founder and Managing Partner at East Ventures, and Roderick Purwana, Managing Partner at East Ventures.

As a pioneer and leading sector-agnostic venture capital firm in Southeast Asia, East Ventures recognizes the critical role of investment in accelerating national economic progress. Whether the capital flows into government programs or private enterprises, it plays a vital role in strengthening investment stability and fostering long-term growth.

Despite ongoing global economic and geopolitical uncertainty, East Ventures remains firmly committed to supporting Indonesia’s startup ecosystem. We “defy gravity” and choose to move forward.

Rather than merely enduring market cycles, the focus is on building beyond them—supporting founders who rise above challenges and redefine what is possible in Southeast Asia’s tech landscape.

The only path is up, and we move together with our ecosystem in alignment with Danantara’s long-term vision for a stronger and more inclusive Indonesian economy.

If you are a startup founder looking to further scale your business, pitch to us.