Indonesia’s parliament has approved a draft law to create the Danantara sovereign fund, the Jakarta Globe reported.
Danantara’s main tasks will be to consolidate the management of state-owned enterprises and deal with their investments and dividends, and the passed law will allow it to raise start-up capital of at least 1 quadrillion Indonesian rupiah ($61.3 billion).
Authorities have signaled that the fund’s portfolio will be based on seven large state-owned enterprises from the banking (Bank Mandiri, Bank BRI, Bank BNI), mining, energy (Pertamina, PLN) and telecommunications (Telkom Indonesia) sectors.
Danantara will manage approximately $600 billion in assets, including from the existing sovereign fund Indonesia Investment Authority (INA). The figure is expected to grow to $982 billion over time, making Danantara the world’s fourth-largest sovereign fund after structures in Norway, the UAE and China.
The finance ministry-controlled INA is expected to be integrated into Danantara, which will report directly to the president. INA was formed in 2020 to manage $10.5 billion in assets and capital, but began operations the following year. Danantara was originally scheduled to launch in November 2024.
The State Property Fund of Ukraine (SPF) wants to be transformed into the Sovereign Fund, a state asset management fund, Rustem Umerov, who has been appointed its head this week, said.
“We will perform the functions of selling through privatization, through leasing. But we are also considering expanding the mandate in order to create the State Asset Management Agency, so that we can see that strategic assets will be in the fund, will be managed by it,” he said.
According to Umerov, privatization will continue and the fund would like to become “a good contributor of the government in terms of income.”
