Danantara Forms DDMF to Manage Giant Sea Wall Funding, Here's AHY's Reaction

Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) has welcomed the establishment of the Danantara Development Management Fund (DDMF), which will act as the funding manager for long-term projects, including national infrastructure development. According to AHY, the presence of DDMF complements the Danantara Investment Management (DIM), which focuses more on investment, while DDMF is directed to support long-term strategic projects. “For me, as Coordinating Minister for Infrastructure, I will be dealing more with DDMF. Why? Because one of the strategic pillars of DDMF I heard earlier is national development and essential infrastructure. And this is certainly a package that aligns with the national priority work programme,” AHY explained to reporters at Wisma Danantara, Jakarta, on Monday. AHY said DDMF will be led by Danantara Chief Technology Officer Sigit Santosa. Sigit is known to be a former President Director of PT Pindad (Persero). One of the projects of primary concern is the construction of the Giant Sea Wall. AHY considers the project urgent to protect several areas affected by land subsidence and rising sea levels. According to him, areas requiring immediate protection include Jakarta Bay and the Semarang, Kendal, and Demak regions in Central Java. The ongoing phenomena of land subsidence and tidal flooding are deemed to require infrastructure intervention through the construction of the Giant Sea Wall, which demands very large investment. In addition, the government is also seeking to accelerate the development of the railway sector in various regions of Indonesia. This development is carried out through the reactivation of old lines, revitalisation of existing networks, and construction of new tracks. AHY mentioned that railway network development is not only focused on Java but also includes the Trans Sumatra, Trans Kalimantan, and Trans Sulawesi projects. This infrastructure is expected to support passenger transport while improving logistics distribution efficiency, particularly in regions with large mining commodities. According to him, strengthening rail-based logistics networks will help increase productivity and the economic value of the mining sector in various areas. Therefore, long-term financing support from DDMF is considered important to realise these projects. In the housing sector, AHY also encouraged Danantara’s involvement in supporting the target of building 3 million homes. He hopes DDMF can provide a sustainable financing scheme so that low-income communities have broader access to decent housing at affordable prices. In addition to housing projects, AHY also conveyed a number of investment needs for water resource management and other basic infrastructure development.