Danantara to Allocate 80% of Investments Domestically, 20% Overseas
JAKARTA - Investment and Downstreaming Minister/BKPM head and Danantara CEO Rosan Roeslani has revealed that 80% of Danantara's investments will be placed in Indonesia, whilst the remaining 20% will target overseas investment projects.
Rosan explained that Danantara's presence would boost foreign investor confidence in investing domestically, as the government, through Danantara, would offer opportunities to participate in domestic investment projects.
"Public expectations for Danantara are high, and people are asking what the investments will be. I'm sure many are waiting, but we will conduct proper due diligence — financial, legal, technical, administrative and so on — for our investments," he said at the Entrepreneurial Leadership In Action: Steering Indonesia's Investment & Industrial Renaissance event at Paramadina University on Friday (13/6).
Rosan explained that Danantara and incoming foreign investment would have a complementary relationship. Funds in Danantara could be leveraged as business investments, enabling on-the-ground investment to increase four to five times over. When investors put in capital, Danantara could become part of that investment, thereby increasing trust.
"Danantara also wants approximately 80% of its investments to be in Indonesia, with the remaining 20% invested overseas. It is estimated that around USD135 billion in income will come in over five years," he added.
Rosan further noted that investment is crucial as a spearhead of the economy and for creating employment. On one hand, investment is needed, but on the other, there are state-owned enterprises (SOEs) whose assets need to be grown further, as many SOEs still require improvements in productivity and efficiency.
Rosan explained that Danantara's presence would boost foreign investor confidence in investing domestically, as the government, through Danantara, would offer opportunities to participate in domestic investment projects.
"Public expectations for Danantara are high, and people are asking what the investments will be. I'm sure many are waiting, but we will conduct proper due diligence — financial, legal, technical, administrative and so on — for our investments," he said at the Entrepreneurial Leadership In Action: Steering Indonesia's Investment & Industrial Renaissance event at Paramadina University on Friday (13/6).
Rosan explained that Danantara and incoming foreign investment would have a complementary relationship. Funds in Danantara could be leveraged as business investments, enabling on-the-ground investment to increase four to five times over. When investors put in capital, Danantara could become part of that investment, thereby increasing trust.
"Danantara also wants approximately 80% of its investments to be in Indonesia, with the remaining 20% invested overseas. It is estimated that around USD135 billion in income will come in over five years," he added.
Rosan further noted that investment is crucial as a spearhead of the economy and for creating employment. On one hand, investment is needed, but on the other, there are state-owned enterprises (SOEs) whose assets need to be grown further, as many SOEs still require improvements in productivity and efficiency.