Indonesia’s Danantara Fund Needs Political Stability to Gain Investor Confidence
Indonesia's Danantara sovereign wealth fund must outlast political administrations to prove its value, says Chief Investment Officer Pandu Sjahrir.
POLICY WIRE — Jakarta, Indonesia — The success of Indonesia’s Danantara sovereign wealth fund hinges on its ability to endure beyond the tenures of various political administrations, according to its Chief Investment Officer, Pandu Sjahrir. Sjahrir emphasized that the fund’s longevity is critical to establishing investor confidence and demonstrating its value to the populace.
Sjahrir highlighted two key initiatives aimed at bolstering investor trust: the demutualization of Jakarta’s stock market and the development of Bali’s first financial center. “Investment is almost everything for us. Confidence is the name of the game, — and we have to create long-term stability,” he said.
The demutualization of the Jakarta stock market is intended to enhance its efficiency and attractiveness to both domestic and international investors. Meanwhile, the establishment of a financial center in Bali is part of a broader strategy to diversify Indonesia’s economic landscape and reduce its dependency on Jakarta as the sole financial hub.
Sjahrir’s comments come at a time when Indonesia is seeking to attract more foreign direct investment to support its economic growth ambitions. The Danantara fund, launched in 2020, is a key component of this strategy, aimed at managing the country’s assets more effectively and generating higher returns.
Reporting by Policy-Wire (PW)
