JAKARTA: Indonesian President Prabowo Subianto launched a new sovereign wealth fund on Monday, which aims to oversee more than US$900 billion in assets as he looks to turbocharge growth in Southeast Asias biggest economy.
Prabowo signed a document at the presidential palace in Jakarta inaugurating the new fund, known as Daya Anagata Nusantara or Danantara, which is modelled on Singapores investment arm Temasek.
I, as the president of the Republic of Indonesia, sign the government decree about the organisation and governance of the investment management body, Daya Anagata Nusantara, he said at the palace.
The recently inaugurated leader has pledged to take annual growth from 5% to 8%, ordering widespread government cuts to fund his big-ticket campaign pledges, which last week sparked the first protests of his rule.
Danatara will take control of government holdings in state companies, with an initial budget of US$20 billion, according to state news agency Antara.
The government has not specified which state-owned companies will fall under the funds control but Prabowo has said he wants it to eventually manage more than US$900 billion in assets.
Prabowo will use the fund as an investment vehicle and said it could finance more than a dozen projects this year, with investments expected across a range of sectors including renewable energy and food production.
Danantara will be Indonesias second sovereign wealth fund, after the Indonesia Investment Authority, which was launched in 2021 and holds US$10.5 billion in assets.
