Danantara Prioritizes Jobs and Value Creation Over High Returns
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JAKARTA, investortrust.id — Indonesia’s sovereign wealth fund Danantara is prepared to accept investment returns below double-digit levels in exchange for high-impact outcomes such as quality employment and technology transfer, according to its Chief Executive Officer Rosan P. Roeslani.
Speaking at a gathering of media editors in Jakarta on Friday, July 25, CEO Rosan said the agency—formally known as the Investment Management Authority of Daya Anagata Nusantara (BPI Danantara)—is not pursuing profits alone, but is driven by a mission to optimize and create long-term value from Indonesia’s state-owned enterprises (SOEs).
“Our expected return is benchmarked to the cost of capital. We aim for returns above 10 percent, but we are willing to accept less if it leads to quality job creation and knowledge transfer,” Rosan said.
The fund’s investments will be led by Chief Investment Officer Pandu Patria Sjahrir, while operational transformation of SOEs will fall under Chief Operating Officer Dony Oskaria. Rosan emphasized that Danantara’s role goes beyond typical asset management.
“If we only chase return, we’d be no different from any other investment manager. But Danantara has a national mission,” he said.
Faster Mandates, Broader Authority
Although only five months old, Danantara already oversees 1,046 entities, including parent firms, subsidiaries, and affiliates within the SOE ecosystem. Rosan described the agency as “a five-month-old baby that’s already sprinting,” underscoring its early momentum.
Crucially, Danantara has the authority to restructure state enterprises without waiting for parliamentary approval—a departure from the conventional oversight structure. This includes the ability to shut down, merge, privatize, or liquidate SOEs deemed unproductive.
“We conduct thorough evaluations. If a company needs to be closed, we can do it immediately. We don’t need DPR (House of Representatives) approval,” he said.
Still, Rosan noted that Danantara remains accountable to three parliamentary commissions: Commission VI for SOEs, Commission XI for finance and banking, and Commission XII for investment—given Rosan’s dual role as Investment Minister.
“Usually one commission is enough, but we have three. It’s part of the checks and balances,” he added.
A Culture of Integrity and Independence
Rosan stressed that good governance, transparency, and integrity are central to Danantara’s operations. Despite its powerful mandate, Danantara aims to maintain public trust by building a team based solely on professional merit—free from political interference.
He revealed that President Prabowo Subianto personally reviewed the curriculum vitae of core team members, spending nearly three hours assessing candidates’ academic backgrounds and career records. “Not a single name was dictated by the President, but he scrutinized every CV,” said Rosan.
Danantara is tasked with managing state assets worth close to $1 trillion, a responsibility that Rosan said the agency does not take lightly.
“A large mandate comes with large responsibility. We intend to grow these assets responsibly and transparently,” he said.
