Indonesia's Danantara Fund Appoints 'Dream Team' Advisers

Indonesia's new sovereign fund, Danantara, has unveiled its 'dream team' of advisors, including former presidents Joko Widodo and Susilo Bambang Yudhoyono, hedge fund manager Ray Dalio, economist Jeffrey Sachs, and former Thai Prime Minister Thaksin Shinawatra. Danantara, launched last month, aims to manage over $900 billion in assets and is a key initiative for President Prabowo Subianto to achieve an 8% economic growth target by 2029 by reinvesting dividends from state-owned enterprises. Sachs confirmed his role as a special adviser, stating his contributions would be voluntary and focused on supporting Indonesia's sustainable development. The fund’s initial investments will target sectors such as natural resources, artificial intelligence, and food security. However, the formation of Danantara has raised concerns about government involvement in the economy, contributing to recent volatility in Indonesia's stock market. The benchmark index saw significant fluctuations, dropping as much as 7% recently amidst investor apprehensions.