A rapid expansion of sovereign wealth fund Danantara's mandate is entrenching its role as a key vehicle for President Prabowo Subianto's nationalist agenda, even as doubts grow over its execution capacity and political independence.Prabowo rattled global markets last month by announcing Indonesia will centralize exports of strategic commodities, starting with coal, palm oil and ferroalloys. In a fiery speech to the House of Representatives, he called it a necessary state intervention to halt decades of exploitation of the resource-rich country.
It was a familiar rallying cry, part of the former general's nationalist narrative that he has stressed since taking power in 2024.
Rather than tasking existing government departments, Prabowo handed execution to a new unit, Danantara Sumberdaya Indonesia (DSI), signaling the fund's expanding role in Southeast Asia's biggest economy. Danantara reports directly to the president.
"It's increasingly clear that all its [Danantara's] functions are decided based on politics, whether for political purposes or to meet (Prabowo's) political promises," Yose Rizal Damuri, executive director and economist with the Center for Strategic and International Studies (CSIS), said.
