Transparency and governance key to Indonesia’s new sovereign fund sidestepping 1MDB pitfalls

[JAKARTA] Indonesia will soon launch Danantara, a national investment agency to overhaul multi-billion-dollar state-owned assets, as a cornerstone of its new president’s economic strategy.

Experts, however, warn that its success will depend on strict transparency and insulation from political influence – a crucial takeaway from Malaysia’s 1MDB scandal.

Some observers have raised concerns about potential overlaps with the country’s sovereign wealth fund, the Indonesia Investment Authority (INA).