Danantara to prioritize investment in 9 key sectors, boost RI's economic edge: CIO

  • Published on 25/04/2025 GMT+7

  • Reading time 3 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

Pandu Sjahrir - image source: Katadata/Fauza Syahputra

Pandu Sjahrir - image source: Katadata/Fauza Syahputra

Chief Investment Officer (CIO) of the Daya Anagata Nusantara Investment Management Agency (BPI Danantara), Pandu Patria Sjahrir, said that there are 9 sectors that will be the agency’s investment priorities.

He said the selection of this sector is based on the economic impact provided, and the selection of priority sectors is adjusted to the vision and mission that are the guidelines for Danantara.

"These are some of the sectors that we will activate in the next 12 months. We will immediately start the process, related to finance, and investment," Pandu said on Thursday, April 24, 2025.

He cited that the first sector that will be a priority is industrial downstream, which includes minerals such as nickel, tin, bauxite and others. Also included is oil and gas, such as petrochemicals and ammonia as well as plantations, such as biodiesel and bioavtur.

Furthermore, the upstream sector includes oil and gas production. The third sector is manufacturing. Through Danantara, it will prioritize the utilization of China+1 opportunities in the electric vehicle (EV) and renewable energy ecosystems.

Then the food security sector which includes aquaculture, protein, food plantations, including agricultural technology. The fifth is digital infrastructure which includes data centers, connectivity, fiber optics, submarine cables, and tower consolidation, while the sixth is the water and waste infrastructure sector.

Pandu said that Danantara will prioritize investment in water dams, water management and new landfills.

Then the energy security sector which includes renewable energy, power plants, transmission, petrochemical refineries and bioenergy. Next is the strategic real estate sector with investment in sports complexes, industrial areas and real estate.

Finally, there are new sectors such as artificial intelligence (AI) computing data centers, advanced semiconductor manufacturing and so on.

"We will soon start the process related to finance and investment," Pandu said.

Investment requirements

Pandu cited that there are seven key indicators for Danantara in carrying out investment projects. The first is the use of endowment funds related to Indonesia's right-to-win in certain sectors. Such as natural resources and Indonesia's reserves which are the key. While in labor-intensive industries, the determining factor is the availability of labor.

The second indicator is related to the multiple impact. He said this indicator is related to the calculation of the Gross Domestic Product (GDP) generated by every dollar of investment in a certain sector will have a multiple effect on other affected sectors.

The third indicator is the opportunity to create jobs. Danantara estimates the average number of jobs created for each investment made in the sector. The more labor absorbed, the greater its strategic value for Indonesia's economic development.

Then there is the country's competitiveness, which is seen from the influence of its investment on increasing Indonesia's competitiveness in the global value chain, with sectors that make Indonesia more competitive in the international market receiving high priority.

Next is national security. Pandu said that investments that have an impact on important resilience factors for the country such as food security and health service resilience will be a priority.

Sixth, Danantara will identify disruptive trends that can help Indonesia surpass other countries. Sectors that have innovative and transformative potential are considered great opportunities for the future. Finally, this investment service will assess the average return on historical shareholder investment in the sector.

"From this indicator we can see the investment project. We focus on Indonesia. In my language, right to win, because this is our business model," Pandu concluded.

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