Supporters outside the Presidential Palace watch a live feed showing Prabowo Subianto delivering a speech after taking the oath as President of Indonesia at the parliament in Jakarta on October 20, 2024. (Photo: CFP)
Indonesia is set to establish a national investment holding company to integrate scattered investments and leverage them.
Indonesia's newly elected president, Prabowo Subianto, appointed Muliaman Hadad, the former chief of the Financial Services Authority, as the head of the company on Tuesday.
Hadad noted discussions about the new agency would involve the State-Owned Enterprises (SOEs) Ministry as well as the Indonesia Investment Authority, the country's sovereign wealth fund.
Similar to Singapore's Temasek, a state-owned investment firm, the newly established agency called Daya Anagata Nusantara Investment Management Agency will manage state investments outside the state revenue and expenditure budget, once approved by parliament.
The move is to centralize investment management in key industries such as banking, telecommunications, construction, and mining. It also seeks to build investor confidence through efficient asset management and be open to the privatization of certain non-essential companies.
Prabowo's plan may change the market landscape and attract foreign investors, while reducing state control over non-critical areas may stimulate private investment and promote economic growth in various domains.
Government holdings in state enterprises are managed by the State-Owned Enterprises Ministry at present. State firms in sectors such as banking, telecommunications, construction, and mining dominate the Indonesian economy.
Reporter: Clonde Zhang
Editor: Steven Yuen, Will Wei, James
