Indonesia’s sovereign wealth fund BPI Danantara is suggested to focus on long-term, real sector investments to maximize its contribution to national economic growth as the fund's strength lies not only in the volume of capital raised, but also in how strategically that capital is deployed.

Herry Gunawan, a state-owned enterprise (SOE) analyst from NEXT Indonesia, said Danantara’s assets have already reached a level that reflects significant national investment potential. However, for this capital to effectively boost economic performance, it must be accompanied by additional investment inflows, especially from the private and foreign sectors.

“Danantara’s investments should act as a magnet for private capital, particularly from foreign investors. This would enhance domestic investment capacity and help accelerate GDP growth,” Herry told Kontan on Sunday, 6 July, 2025.

He emphasized that Danantara should avoid overreliance on portfolio investments, which serve only to support capital reserves rather than drive structural transformation. Instead, the fund should prioritize real-sector projects, particularly in intermediate industries − sectors that produce raw materials or supporting inputs for other manufacturing activities.

“About 70 percent of Indonesia’s imports consist of intermediate goods. Investing in this segment can reduce our dependency and create jobs on a large scale,” Herry said.

Since its launch on February 24, 2025, Danantara has secured US$7 billion (Rp113.5 trillion) in international investment commitments from Qatar, Russia, China, and Australia. Most recently, the fund attracted a US$10 billion investment (Rp162.36 trillion) from ACWA Power, a Saudi-based leader in green hydrogen and desalination technologies.

“Danantara and ACWA Power are collaborating on large-scale clean energy projects,” Danantara CEO Rosan P. Roeslani announced via his Instagram account on Saturday, July, 5, 2025.

Wijayanto Samirin, an economist from Paramadina University, echoed the call for a long-term strategic approach. Drawing on the global experience of sovereign wealth funds, he highlighted the importance of patient capital that focuses on sustainable national development.

“In Indonesia’s case, strategic sectors such as downstream industrialization, energy transition, electric vehicles (EVs), and infrastructure offer long-term growth potential,” Wijayanto said on Sunday, July 6, 2025.

“With substantial capital commitments and clear strategic direction, Danantara is expected to play a pivotal role in driving Indonesia’s future economic development, fostering industrial self-reliance, and attracting more sustainable investment into key sectors,” he added.