” Good Device”
Danantara will focus on projects in energy and food safety, artificial intelligence development, and natural resources running in its first influx of investment for US$ 20 billion.
According to some analysts, the main economy’s largest market saw a market downturn last week when the main share index dropped as much as 7 %, causing a trading halt, due to the establishment of Danantara and concerns about the state’s significant role in the economy.
Indonesian stocks dropped to their lowest level since August 2021, while the rupiah’s dollar hit a three-week reduced as worries persist about the government’s fiscal heath and prospects for growth.
Although Prabowo has stated that the bank may be audited at any time by anyone, there have been concerns in the financial markets about possible political interference in Danantara.
Rosan claimed that the hiring of professional managers would strengthen industry confidence.
At the same time, he said,” When these brands are well received, it could be a positive sign for the Indonesian economy and job creation,” adding that management of all of Indonesia’s state-owned companies was in place for the new fund.
Oktavianus Audi, an equity analyst at Kiwoom Sekuritas, told Reuters that Danantara’s group construction could possibly secure sector trust because it is full of international names with credibility in the financial sector.
But, Wijayanto Samirin, an economist at Paramadina University, advised the firm’s management to make sure it wouldn’t become politically influenced in the future.
Original Indonesian managers include former Bank Mandiri and HSBC officials, former Indonesian central bank directors, and former chief investment officer of Indonesia Investment Authority, the first nation’s earliest sovereign wealth fund.