Danantara, officially launched on Feb. 24, continues to be a topic of widespread public discussion.
Following the launch, numerous public reactions emerged concerning the management of state assets and its impact on Indonesia’s future economic stability.
The launch was also marked by controversies, such as dual positions within its board of directors, the continued decline of the Indonesia Stock Exchange (IHSG), and a significant depreciation of the rupiah.
To date, there is still no clear explanation of how Danantara will operate, including its management strategy and funding roadmap.
Professor Mudrajad Kuncoro, an economist from Universitas Gadjah Mada (UGM), highlighted several crucial points that the government needs to communicate to the public. First is the need for a clear investment strategy, and second is how to secure sustainable funding. Danantara, according to Professor Kuncoro, is not merely an economic instrument but also reflects a commitment to making Indonesia stronger, more inclusive, and progressive.
Moreover, since its existence aims to enhance global competitiveness, Danantara is expected to stimulate economic growth beyond the State Budget (APBN), even though its initial capital came from the APBN.
Professor Kuncoro emphasized the importance of ensuring that Danantara is regularly audited.
“Because, as mentioned earlier, we want good governance. And good governance means being open. Its usage and everything related to it must be transparent,” he stated on Wednesday (Mar. 5).
Professor Kuncoro also pointed out that the investment portfolio and the source of Danantara’s funding must be more transparent.
“Which sectors will be targeted to promote inclusive and sustainable economic growth?” he elaborated.
Nevertheless, the funds obtained should not only be invested in profitable assets but also be used to drive inclusive economic growth in Indonesia.
Therefore, it is essential to ensure there is no overlap with ministries and agencies in terms of what Danantara aims to achieve.
Equally important, Professor Kuncoro added, is for Danantara’s management to formulate a roadmap and establish clear Key Performance Indicators (KPIs).
Additionally, it must balance its role as a profit-seeking enterprise with its role in fulfilling public service obligations.
“This is a Sovereign Wealth Fund. Is its orientation profit, social impact, or both? The indicators must be clear,” he remarked.
Author: Jelita Agustine
Editor: Gusti Grehenson
Post-editor: Afifudin Baliya
Photograph: Antara