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View all search resultsDanantara doubles overseas bets as Indonesia seeks capital at home
The state asset fund plans to increase overseas investments and establish offices in major financial hubs, even as experts question whether its expanding international footprint will deliver enough benefits to the domestic economy.
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A woman walks past the Wisma Danantara Indonesia building on Aug. 11 on Jl. Jend. Gatot Subroto in South Jakarta. (JP/Iqro Rinaldi)
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s state asset fund Danantara seeks to boost its overseas exposure through a larger foreign investment allocation of its portfolio, experts question whether its ambitions align with Indonesia's economic priorities.
While greater international exposure could diversify Danantara's portfolio and strengthen its access to global capital, analysts say the fund must demonstrate how those investments will ultimately support Indonesia's domestic economy, where financing gaps remain substantial.
Danantara CEO Rosan Roeslani said the fund's domestic-to-international investment allocation, currently around 80:20, could eventually shift to 60:40, effectively doubling the overseas share of its portfolio.
Read also: Danantara launches dollar bond, eyes $1 billion, sources say
The state asset fund has also announced plans to open offices in New York, Hong Kong and Saudi Arabia, citing their importance as financial centers.
"There are a lot of investors there, and they are hubs for financial instruments. Also, at the same time, we are looking at operational opportunities," Rosan said on Saturday, as quoted by Reuters.
The Saudi office would support Danantara's investments in Mecca, where it has acquired land and hotels to serve Indonesian pilgrims.
