Indonesia's Prabowo Subianto officially establishes new sovereign wealth fund

Jakarta: President Prabowo Subianto on Monday signed a regulation that officially established a new sovereign wealth fund, "Danantara Indonesia", which will hold government stakes in state firms and is intended to operate like Singapore's investment arm Temasek.

In a televised address, Prabowo said he had appointed Danantara's new executives and advisors, although he did not name them.

The fund is expected to eventually manage assets worth more than $900 billion to help drive the government's goal of achieving 8% growth within the next five years.

Danantara will invest in sustainable high-impact projects across sectors such as renewable energy, advanced manufacturing, downstream industries and food production, Prabowo has said.

The fund will take over all the government's holdings in state companies from the State-Owned Enterprises (SOE) Ministry, which include leading lenders Bank Mandiri, Bank Rakyat Indonesia, and Bank Negara Indonesia, lawmakers have previously said.