Jakarta. Indonesia is trying to lure its foreign partners into work together with its freshly launched Danantara, the country's sovereign wealth fund that is expected to manage over $900 billion in assets.

President Prabowo Subianto has just launched a new sovereign wealth fund Danantara in front of foreign business groups and diplomats, among others. In a speech that saw Prabowo switching from Indonesian to English back and forth, the president said that Danantara's launch would mark a new era for the country's government-run businesses. It was also during this launch that Prabowo tried to nudge international investors into striking a deal with Danantara.

"Indonesia sends a clear message to our friends and partners worldwide that Indonesia is open for collaboration, business, investment, and shared prosperity. Danantara Indonesia will allow us to expand our international cooperation," Prabowo said at the State Palace in Jakarta on Monday.

The retired army general said he hopes that Danantara will make the country's global partners recognize Indonesia's potential "not just as an emerging economy, but also as a force for regional stability and shared progress".

Danantara will consolidate the assets of seven major state-run enterprises: banks Mandiri, BNI, and BRI; electricity firm PLN; oil and gas Pertamina; telco giant Telkom; and mining holding MIND ID. For the first round of investment, Danantara will channel $20 billion to a wide range of projects, including nickel and bauxite processing. The $20 billion initial investment cash comes from Prabowo's recent budget efficiency measures. Danantara is set to boast $900 billion in assets under management, possibly making it among the world's biggest sovereign wealth funds.

Prabowo's senior economic advisor Luhut Binsar Pandjaitan renetly hinted at the possibility of an Emirati investor to co-invest in a 10-gigawatt renewable energy project with Danantara. The unnamed Emirati investor is reportedly considering setting up a joint venture with Danantara's state-owned enterprises. The potential co-investor still remains anonymous, but Emirati renewable giant Masdar is among Indonesia's major investors from the United Arab Emirates (UAE). Masdar has already teamed up with PLN to invest in Southeast Asia's first floating solar plant in Cirata, West Java.

Prabowo has picked Investment Minister Rosan Roeslani to be Danantara's chief executive officer.

In a separate press briefing, Rosan told reporters that Danantara would be under the highest security as it directly reports to the president, dispelling concerns over the fund's transparency and governance. According to Rosan, the fund's establishment will make investors more confident in mobilizing their money to Indonesia. Rosan also commented on the possibility of having a joint venture scheme with foreign partners.

"We are open. The funds that we have will give them confidence and certainty of investing in Indonesia. Because we are not only asking them to invest [in our country], but we are inviting them to co-invest. So it's like we are putting skin in the game," Rosan said.

Prabowo is currently trying to clock an economic growth of 8 percent, and investments will be necessary to reach those figures within his term. The Southeast Asian country had registered Rp 1,714.2 trillion (almost $107 billion) in investments throughout 2024. Indonesia's gross domestic product (GDP) has been expanding at around 5 percent. Early government estimates show that Prabowo's 8-percent growth dream would require Rp 13,528 trillion from foreign and domestic investors.

Seasoned businessman and Luhut's nephew Pandu Sjahrir is Danantara's chief investment officer. Dony Oskaria, the deputy minister of state-owned enterprises, assumes the role of the fund's chief operating officer.

In 2021, Former President Joko "Jokowi" Widodo launched the country's first-ever sovereign wealth fund: the Indonesia Investment Authority (INA). There were previous reports of Danantara possibly consolidating INA's $10.5 billion worth of assets. Rosan denied such a report, saying that INA "stands as a separate entity".