Indonesian President Prabowo Subianto plans for an annual 8% economic growth goal by 2029, driven by the establishment of Danantara, a sovereign wealth fund. This fund is designed to enhance the economy through domestic investments while overseeing Indonesia's state-owned enterprises (SOEs) to streamline operations. Governance concerns arise from new laws granting the president increased control over SOEs, causing a decline in investor confidence as evidenced by a dip in the stock market. Danantara will supervise major players like Pertamina and Perusahaan Listrik Negara as it aims to improve competitiveness and job creation through consolidation.
Danantara, Indonesia's latest sovereign wealth fund, aims to facilitate 8% annual economic growth by consolidating state-owned enterprises for optimized resource management and job creation.
Critics express concern over governance following a law that increases presidential control over state enterprises, leading to a decline in Indonesia's stock market upon the fund's launch.
Danantara will oversee major state-owned enterprises like Pertamina and Perusahaan Listrik Negara, aiming to boost competitiveness and economic growth through integrated management.
Sovereign wealth funds exist globally, originating with Kuwait in 1953; however, Danantara distinguishes itself by managing domestic state enterprises alongside investing surplus funds.
Collection
[
|
...
]