President Prabowo Subianto has outlined the strategic direction of the Daya Anagata Nusantara Investment Management Agency (BPI Danantara), marking the beginning of operations for Indonesia’s newly established sovereign investment authority.

Established on February 24, 2024, Danantara is tasked with managing and optimizing state-owned enterprises (SOEs) portfolios through long-term, strategic investments that align with Indonesia’s economic priorities.

Danantara’s Chief Investment Officer Pandu Patria Sjahrir said that the institution will undergo four transformative phases, namely business fundamentals assessment, organizational streamlining, strategy implementation, and value creation. These phases are designed not only to generate financial returns but also to create jobs, manage risks, and foster partnerships with the private sector and global investors.

"Our goal is not only return on investment, but also job creation, risk management, and close collaboration with the private sector and global investors," Pandu said on Monday, April 28, 2025.

The transformation process is structured around three key approaches:

● Top-down portfolio mapping – This stage involves evaluating all business sectors, excluding irrelevant or overlapping entities like foreign-based holdings, joint ventures, and special-purpose vehicles. The goal is to streamline and prioritize areas with high value creation potential.

● Bottom-up analysis – A deeper dive into selected business areas to assess opportunities for restructuring, value maximization, and high-level execution roadmaps.

● Execution of corporate actions – Due diligence across financial, legal, and operational aspects will be conducted for targeted SOEs. This will be followed by transaction structuring, regulatory approvals, and potential post-merger integrations.

Pandu emphasized that managing risk is a core part of Danantara’s operations, supported by global expertise. He also underscored the “right to win” mindset in focusing on sectors where Indonesia has competitive advantages.

Danantara has identified nine priority sectors, aligned with Indonesia’s national development agenda:

● Industrial downstream – Includes mineral processing (nickel, tin, bauxite), oil and gas derivatives (petrochemicals, ammonia), and plantation-based fuels like biodiesel and bioavtur.

● Upstream energy – Focuses on oil and gas production.

● Manufacturing – With an emphasis on the “China+1” strategy, targeting opportunities in EV ecosystems and renewable energy technologies.

● Food security – Encompasses aquaculture, protein production, food crops, and agri-tech.

● Digital infrastructure – Covers data centers, fiber optic networks, undersea cables, and telecom tower consolidation.

● Water and waste infrastructure – Prioritizes investments in dams, water treatment, and waste disposal systems.

● Energy security – Focuses on renewables, power generation, energy transmission, refineries, and bioenergy.

● Strategic real estate – Targets development of industrial estates, sports complexes, MICE (Meetings, Incentives, Conventions, and Exhibitions) facilities, and special economic zones.

● Emerging sectors – Includes advanced AI computing data centers, semiconductor manufacturing, and other future-facing technologies.

The initiative is being closely overseen by a supervisory board led by State-Owned Enterprises Minister Erick Thohir, with the goal of ensuring that Danantara becomes a transformative force in Indonesia’s investment landscape.