Indonesia’s protests were ‘wake-up call’ for sovereign fund: CIO

“At the end, it’s about the economy,” said Pandu Sjahrir, chief investment officer of Danantara. PHOTO: BLOOMBERG

Published Thu, Oct 2, 2025 · 02:40 PM

[SINGAPORE] Indonesia’s new sovereign wealth fund Danantara received “a good wake-up call” a few weeks ago when violent protests rocked South-east Asia’s largest country, its chief investment officer Pandu Sjahrir said.

“At the end, it’s about the economy,” Sjahrir said during the Milken Institute Asia Summit in Singapore on Thursday (Oct 2). He said the demonstrations showed why it is important for the fund to help further Indonesian President Prabowo Subianto’s agenda to create more jobs and meet an ambitious 8 per cent economic growth target.

Demonstrators in late August burned down bus stops not far from Danantara’s headquarters in Jakarta during protests over rising living costs and inequality.

“If you look at what happened four weeks ago, the one that’s pushing for change are the younger people of Indonesia,” Sjahrir said. “At the end of the day, you cannot ignore them, because they will be the leaders of our country. You have to listen.”

Danantara was set up in early 2025 to manage and invest Indonesia’s national assets, including the country’s state-owned enterprises. It is in the process of raising US$3 billion from a sale of low-yielding “Patriot Bonds” to local tycoons, and plans to use the funds to help support domestic projects that could have significant national impact, Sjahrir said during an interview on Wednesday with Bloomberg Television.

On Thursday, Sjahrir said he is juggling various roles including communications to stakeholders, fixing the corporate culture of state companies and addressing credibility issues that the fund and Indonesia are facing.

Two-year-old China-funded bullet train is fast becoming a fiscal time bomb for Indonesia

Since the Asian financial crisis, BI has developed a track record of acting aggressively in defence of the rupiah, at times surprising investors with rate hikes.

Indonesia’s central bank faces growing threats to independence

An agreement to increase the 51 per cent stake in one of the world’s largest copper mines is close to concluding, but the shares would not be free, Danantara CIO Pandu Sjahrir said.

Danantara says Freeport stake will have a cost

Indonesia has rules limiting the annual budget deficit at 3% of GDP and keeping public debt at no more than 60% of GDP, Dr Purbaya told a press conference, while adding these numbers are “arbitrary”.

No need for changes in Indonesia’s fiscal rules: finance minister

INA is Indonesia’s first sovereign wealth fund, but now the smaller of two, following the launch in February of Daya Anagata Nusantara Investment Management Agency.

Indonesia sovereign wealth fund INA targets data centres, AI in healthcare, renewables

The Prabowo administration’s new policies could have major implications for the country’s palm oil and mining industries, say the writers.

Beyond the protests, investors must navigate Prabowo’s land policy shifts

Dr Purbaya Yudhi Sadewa's appointment marks both continuity and uncertainty for South-east Asia’s largest economy, which is grappling with social unrest, surging living costs and mounting fiscal woes.

Little-known Purbaya now faces Indonesia’s biggest fiscal test

Economists are holding on to their growth projections for Indonesia for now, noting that the recent protests rocked the political boat, but are unlikely to result in major shifts in government policy.

Political turmoil hurting Thai growth; Jakarta riots leave Indonesia investors on edge

A few months ago, Danantara faced one its first challenges when Ray Dalio, the founder of Bridgewater Associates, opted not to be on its advisory board after the fund had publicly touted his appointment along with four other prominent business and political leaders in March. The fund subsequently said Dalio will serve as an informal adviser instead.

“What we’re trying to do is to change the cultural perception domestically first, so that when we are here in Milken and in future Milkens, you look at Indonesia not with a big trust deficit and questions,” Sjahrir said. BLOOMBERG

Sovereign wealth funds Indonesia

Share with us your feedback on BT's products and services

Feedback