Indonesia has launched sovereign wealth fund Dana Anagata Nusantara (Danantara), a state-backed investment management entity with total assets over $900 billion. The initiative, inaugurated by President Prabowo Subianto, aims to optimize state-owned assets and attract foreign investments. The first investment wave, totaling $20 billion (Rp 326 trillion), will be directed toward strategic sectors such as nickel processing, artificial intelligence (AI), data centers, petrochemicals, food security, and renewable energy.
A large portion of Danantara’s funds will be set aside for Indonesia’s energy transition. The United Arab Emirates (UAE) has shown interest in funding 10 GW of renewable energy projects worth $10 billion, while Saudi Arabia is considering investments in battery storage solutions for sustainable energy. These collaborations are expected to ease PLN’s financial burden and support the country’s shift away from fossil fuels. Danantara is also set to play a critical role in early retirement of coal power plants (PLTU), a move seen as crucial for achieving Indonesia’s net-zero emission targets.
During the Bloomberg Technoz Economic Outlook 2025, Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan highlighted UAE’s commitment to investing in Indonesia’s renewable energy sector. “[UAE Minister of Energy] Suhail Mohamed Al Mazrouei said, ‘Okay. Through a joint venture, we [UAE] can invest in a 10 GW renewable energy project worth $10 billion.’” Luhut emphasized that this investment marks a major step toward accelerating Indonesia’s green energy transition.
In addition to energy projects, Danantara will transform state-owned enterprises (BUMN) into globally competitive entities through good corporate governance (GCG) and innovation-driven strategies. This aligns with Prabowo’s vision to establish Indonesia as a leading economic player, attracting global investments and fostering long-term economic sustainability. Danantara is set to not only boost domestic growth but also strengthen Indonesia’s standing in the international financial landscape.
References:
