The article entitled “What to expect from Indonesia’s new sovereign wealth fund” published in the East Asia Forum on April 14, 2025, critically examines the formation and challenges faced by formation and challenges faced by Indonesia’s sovereign wealth fund, Danantara. In this article, the authors are Teuku Harza Mauludi, a researcher at the Center for Political Studies, University of Indonesia (PUSKAPOL UI), and Nandito Oktaviano, an intern researcher at the Center for Political Studies, University of Indonesia (PUSKAPOL UI). It highlights that Danantara is currently under public scrutiny due to its funding sources from the State Budget and leadership heavily influenced by political patronage.
This article raises concerns about the potential misuse of funds and conflicts of interest that may arise from the close relationship between political elites and the fund’s managers. The authors emphasize the importance of reforming the relationship between politics and business if the government wishes to ensure that Danantara can truly play a transformative role in Indonesia’s economic development.
Read: What to expect from Indonesia’s new sovereign wealth fund
