Indonesia's Bold Move: Danantara Investment Management Agency Takes Flight

Indonesia has approved the establishment of the Danantara Investment Management Agency, with the aim to enhance state investment returns. With an initial capital of 1,000 trillion rupiah, this agency mirrors Singapore's Temasek and is led by former Financial Services Authority chief Muliaman Hadad.

In a significant legislative move, Indonesia's parliament has passed a bill establishing the Danantara Investment Management Agency. The agency aims to boost the performance and profitability of state-owned investments, mirroring Singapore's successful Temasek model.

The newly formed agency will be capitalized with an impressive 1,000 trillion rupiah ($61 billion) and has been spearheaded under the leadership of President Prabowo Subianto. The strategic move is intended to bring about substantial improvements in state investment returns.

Moreover, Muliaman Hadad, the former head of Indonesia's Financial Services Authority, will helm the agency, reflecting a strong commitment to financial governance and efficacy. The announcement follows shortly after President Subianto's inauguration in October.

(With inputs from agencies.)