Jakarta, Indonesia, Feb 24, (V7N) – Indonesia has launched a new sovereign wealth fund, Daya Anagata Nusantara (Danantara), as President Prabowo Subianto pushes an ambitious plan to accelerate economic growth. The fund, unveiled Monday, is expected to manage more than $900 billion in state assets, making it one of the largest in the world.

Since taking office, Prabowo has set an aggressive target to boost Indonesia’s annual GDP growth from 5% to 8%. To fund his economic initiatives, he has implemented major spending cuts, a move that has already sparked protests.

Danantara, modeled after Singapore’s Temasek Holdings, will oversee government stakes in state-owned enterprises (SOEs) and drive investments in key sectors like renewable energy, food security, and infrastructure development. The fund has been initially allocated $20 billion, but Prabowo envisions it expanding to oversee $900 billion in assets—a significant leap from the $637.5 billion worth of SOE assets recorded in 2023.

While the government touts Danantara as a transformational economic initiative, critics warn of potential governance and transparency risks, especially since the fund will report directly to Prabowo himself.

The president’s fiscal policies—including billions of dollars in budget cuts and a controversial free lunch program—have triggered student-led demonstrations in major cities. In Makassar, police fired tear gas to disperse crowds protesting the government’s economic strategy.

On social media, public skepticism is mounting. A viral post on X (formerly Twitter) captured the sentiment, with one user questioning:
"The government struggles to manage life insurance funds—how can it be trusted with a $900 billion wealth fund?"

Despite the backlash, Prabowo’s administration remains firm. Officials insist that Danantara is crucial to Indonesia’s long-term economic strategy, emphasizing that it will drive sustainable and inclusive investments to secure the country’s future growth.

END/BUS/RH/