headline

Danantara Gets Global Support, Potential To Boost Indonesian Economy

The launch of BP Investasi Danantara by Indonesian President Prabowo Subianto has attracted the attention of various global financial institutions. Several well-known companies such as JP Morgan, FTSE Russell, and McKinsey & Company consider Danantara to have great potential in strengthening the capital market and attracting global investment. 

As a national investment management agency, Danantara functions to manage BUMN assets without relying on the State Budget (APBN). The government hopes that this initiative can encourage more stable and sustainable economic growth. 

JP Morgan's Optimism: Potential Capital Market Catalyst 

JP Morgan considers the presence of Danantara to provide a positive boost to the Indonesian financial market. According to Henry Wibowo, Head of Indonesia Research & Strategy JP Morgan, this institution can be a major factor in the movement of the capital market in the future. 

"Danantara can be a positive catalyst. But for the future, we have to see the details after the President inaugurates it," said Henry in a forum in Jakarta on February 21. 

He also said that if Danantara is able to manage large investments, the impact on the economy could be very significant. 

"If Danantara can leverage up, for example, USD 1 billion-USD 3 billion is used to support the capital market, be it equity, bonds. I can say that it will help boost our economic growth, so hopefully it will be a positive catalyst in the near future," he added. 

FTSE Russell: Indonesia is increasingly competitive in the eyes of investors 

FTSE Russell, a global stock index provider, sees Danantara as a strategic step to increase Indonesia's competitiveness in attracting foreign capital. Wanming Du, Policy Director of FTSE Russell, assessed that Danantara could be a major factor in increasing investment flows into the country. 

He noted that with a projected managed asset of US$900 billion, Danantara has the potential to become the seventh largest sovereign wealth fund in the world. To achieve this potential, he emphasized the importance of a diversified investment strategy and increased transparency. 

"If you look at past examples, where sovereign wealth funds invested in basic infrastructure potential, which helped support economic growth, supported that growth. And this will bring in many things [foreign investors], foreign investment, FDI, for example," he explained. 

Tag: APBN Danantara Prabowo Subianto