Indonesia creates new development arm for Danantara fund

President Prabowo Subianto issued a decree to establish a development investment arm within Indonesia's sovereign wealth fund, Danantara. The new unit will focus on national development and public services with social and economic impact. This expansion broadens the fund's mandate beyond its existing asset and investment management roles.

### Expanding the Danantara Framework The decree, signed April 8 and made public late evening on Sunday, June 1, allows the new arm to request equity injections directly from the state budget. This unit joins two existing entities within Danantara: an asset management arm overseeing over 1,000 state firms and an investment unit focused on maximizing returns. President Prabowo established the overarching fund in February 2025 to report directly to his office.