Danantara, the second sovereign wealth fund in Indonesia, led by CIO Pandu Sjahrir, is designed to complement INA without overlap. Managing $900 billion, it focuses on job creation and economic development, contrasting with INA’s $10 billion, which targets high-return investments. Danantara seeks to support the private sector and mitigate risks typical of venture capital, emphasizing stable investments.
Pandu Sjahrir, Chief Investment Officer (CIO) of Danantara, stated that the newly established sovereign wealth fund (SWF) is designed to complement the Indonesia Investment Authority (INA) without overlapping. Danantara operates with a significant $900 billion in assets, in contrast to INA’s $10 billion. While INA’s focus is on attracting third-party capital for high-return projects, Danantara is dedicated to utilizing its funds for investment and job creation to foster economic growth.
Pandu emphasized that Danantara aims to support rather than compete with the private sector, intending to collaborate with major investors. He pointed out that other nations like Malaysia, Singapore, and the United Arab Emirates successfully manage multiple sovereign funds, illustrating a cooperative approach to investment. Furthermore, he clarified that Danantara would avoid high-risk strategies typical of venture capital, focusing instead on safe, stable investment options to ensure returns above the cost of capital while generating employment.
In summary, Danantara and INA serve distinct yet complementary roles within Indonesia’s economic landscape. With Danantara managing significantly larger funds and focusing on job creation, both entities reflect a strategic approach to sovereign investing. As Danantara prioritizes stability and support for the private sector, it aims to contribute positively to economic growth, distinguishing itself from INA’s investment strategy.
Original Source: www.thejakartapost.com
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