Commission XI: DDMF to finance long-term projects not yet commercially viable

Chairman of Commission XI of the Indonesian House of Representatives, Mukhamad Misbakhun, has explained that the Danantara Development Management Fund (DDMF) is being prepared to finance long-term investments for projects deemed not yet commercially profitable. He noted that not all strategic investment projects can immediately yield returns, necessitating a special financing instrument. “There are long-term investment needs that are not all commercially viable in the short term. So these investments must be covered by the Danantara Development Management Fund,” Misbakhun said after the Government’s Introductory Statement on the 2027 State Budget Bill and Financial Note at the MPR Building in Jakarta on Friday. He explained that the DDMF will not directly finance a project. Instead, it will first conduct studies to assess the business feasibility and commercial potential of the project. “This DDMF must undertake research efforts first. After research, it will conduct a business and commercial viability study, and only then will it be executed as an investment,” he stated. The DDMF will also finance various research and product development activities requiring innovation and in-depth study, including those utilising Indonesia’s natural resources. “This DDMF is indeed mandated by law, because not everything has to be commercial in nature,” Misbakhun added. In his speech, President Prabowo Subianto introduced the DDMF as an instrument to prepare, develop, and finance long-term strategic projects vital for Indonesia. Prabowo said Danantara must become an instrument to build the nation’s capacity in the long term. “Danantara is our sovereign wealth fund. Danantara must become an instrument for building national capacity for decades to come,” Prabowo said. The President hopes that financing through the DDMF will ensure these strategic projects do not have to depend on state budget financing.