Indonesia's President Prabowo Subianto will launch a new sovereign wealth fund called Danantara Indonesia on February 24. — Photo The Star

JAKARTA — Indonesia will launch a new sovereign wealth fund called Danantara this month, with an initial capital of around US$20 billion.

Indonesian lawmakers recently amended the law on state-owned enterprises (SOEs), an amendment that could pave the way for Danantara that will manage assets worth billions of US dollars in state-owned enterprises such as banks, the state power company PLN, PT Pertamina (Persero) oil and gas company, mining giant MIND ID, and Telkom telecommunications company.

President Prabowo Subianto pushed for the launch of Danantara scheduled for February 24, after several delays. Prabowo has high hopes for Danantara to steer Indonesia on the right track towards the 8 per cent growth target he has set since taking office.

According to initial assessments, the assets managed by Danantara will exceed $900 billion. The fund will invest in natural resources and state assets through sustainable, high-impact projects, Prabowo emphasised.

The projects will include those in renewable energy, advanced manufacturing, downstream industries and food production.

Danantara is Indonesia's second sovereign wealth fund, after the Indonesian Investment Authority (INA) established under former President Joko Widodo in 2021. — VNA/VNS