Danantara Building
Fitch Ratings has highlighted the risk of the establishment of the Daya Anagata Nusantara Investment Management Agency (BPI Nusantara/ Danantara) to state finances, suggesting that Danantara's investment strategy is unclear.
According to the Fitch report, loans through Danantara or State-Owned Enterprises (SOEs) under its management could increase the risk of contingent liabilities on the government's balance sheet.
The American credit rating agency warns that funding from Danantara to build a number of national projects could increase the risk of contingent liabilities that will be experienced by the state's financial balance.
“Gross debt of non-financial public companies will account for around 5 percent of gross domestic product (GDP) in 2024,” Fitch Ratings said as quoted on Wednesday, March 12, 2025.
The Indonesian Ministry of Finance has responded to the report and said that the initiative to establish Danantara aims to finance various national projects, a gesture that demonstrates the government's commitment to sustainable development and increasing strategic investment.
Previously, President Prabowo Subianto said that Danantara's investment value reached US$20 billion (Rp325 trillion) for 20 strategic projects.
The 20 projects focus on downstream nickel, bauxite, copper, data center development, artificial intelligence, oil refineries, petrochemical plants, food and protein production, aquaculture and renewable energy.
The establishment of Danantara marks a new era for SOE, which is not only a business entity, but also a national asset that can be an agent of development and growth.
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