Global hedge fund pioneer Ray Dalio has quietly withdrawn from his role as adviser to Indonesia’s newly established sovereign wealth manager, Daya Aganata Nusantara (Danantara), just months after his appointment was announced − a move some observers fear could undercut Indonesia’s ambitions to become a major destination for foreign capital.

According to a Bloomberg report citing sources familiar with the matter, Dalio, the billionaire founder of Bridgewater Associates, chose not to proceed with joining Danantara’s advisory board. The reasons for his decision remain unclear, and Dalio's spokesperson declined to comment when approached on Wednesday, May 28, 2025.

The decision marks a surprising turn for Danantara, which had promoted Dalio’s involvement as part of its effort to signal credibility and professionalism to global investors.

In a presentation to foreign business leaders in Jakarta earlier this month, Danantara listed only four advisers on its board: Helman Sitohang, former Chief Executive Officer Credit Suisse; American economist Jeffrey Sachs; British architect Chapman Taylor; and former Thai Prime Minister Thaksin Shinawatra. Dalio’s name was notably absent.

Despite concerns over the reputational implications of Dalio’s withdrawal, Indonesian markets appear to have taken the news in stride.

“For now, the information that Ray Dalio has withdrawn from Danantara’s advisory board hasn't had a noticeable impact on the Indonesian Stock Exchange (IHSG),” M. Nafan Aji, a senior analyst at Mirae Asset Sekuritas Indonesia, spoke to Indonesia Business Post on Wednesday, May 28, 2025.

“We still need to monitor developments over the next week or two to understand how the IHSG might respond in the longer term,” he added.

Nafan noted that recent trading activity has been shaped more by seasonal factors than by shifts in investor sentiment related to Danantara.

“I must admit, the current movement of the IHSG is being influenced more by the extended holiday period, Ascension Day, the collective leave days, and Pancasila Day, which has resulted in relatively indecisive market behavior,” he cited.

The Jakarta Composite Index (JCI) was slightly higher on Wednesday, with analysts suggesting that any potential volatility linked to Dalio’s exit may only surface once markets return to full activity in early June.

Moving forward

Danantara, separated from Indonesia's more established sovereign wealth entity INA, is tasked with managing strategic state assets and fostering co-investments with foreign partners in key sectors such as infrastructure, digital technology, and renewable energy.

In a statement, Danantara spokesperson Kania Sutisnawinata said the institution is still in the process of finalizing its program portfolio and business roadmap. She declined to comment on Dalio’s involvement or the reason for his removal from the advisory lineup.

Analysts suggest that while Danantara retains respected names on its advisory board, Dalio’s absence may dilute some of the early excitement surrounding the fund’s potential to attract high-profile global investors.

As Danantara moves forward, stakeholders will be closely watching whether the fund can regain momentum and deliver on its promise of becoming a catalyst for strategic investments across the archipelago.

Meanwhile, Stock market observer, Yanuar Rizky, highlighted the potential for conflicts of interest in the management of state assets that were included in BPI Danantara.

He questioned whether the institution was truly established for the collective welfare of the nation or merely an economic instrument for certain groups.

"State assets are invested in Danantara, but the law states that Danantara is not a state administrator. Is Danantara really meant to strengthen the State? Or are there other interests behind it?" Yanuar said on March 11, 2025.

Yanuar said further that the statement made by Ray Dalio, who was included in the Danantara Supervisory Board, sounds like jargon.

"Ray Dalio has been a money maker all his life. His statement sounds like a politician's jargon, such as 'satrio piningit' or 'demigod' like in Iwan Fals' song," he said.

Ray Dalio spoke before a number of Indonesian tycoons at the State Palace in Jakarta on March 7, 2025, that his decision to join BPI was not driven by material interests.

"I'm not here for the money. I've made a lot of money," Dalio, who is known to manage funds worth US$112 billion or around Rp1,825 trillion from his hedge fund company, said.

Dalio, who is now 75 years old, said that his current focus is on contributing to the world, especially in helping developing countries accelerate their economic growth. He cited his involvement in supporting economic reform in China with Deng Xiaoping in 1994 and in Singapore with Lee Kuan Yew.

"I see Indonesia as having great potential, and I see Prabowo as a leader who has the ability to transform the Indonesian economy," Dalio said back then.