GMR Group Assesses Danantara Boosts Foreign Investor Confidence
Visakhapatnam, India (ANTARA) - GMR Group, a multinational infrastructure company, assesses that the presence of the Danantara Investment Management Agency (BPI) can increase foreign investor confidence in Indonesia.
Business Chairman of International Airports & Energy at GMR, Srinivas Bommidala, views the establishment of Danantara, whose total assets under management reach approximately USD 1 trillion, as an important step demonstrating Indonesia’s ability to strengthen support for investors.
“The establishment of Danantara itself is a very important step. Not many expected Indonesia to form an instrument like Danantara, which now manages assets of around USD 900 billion, approaching USD 1 trillion. This gives confidence to many investors that Indonesia is also capable of increasing its capacity,” Bommidala told ANTARA in Visakhapatnam, India, on Saturday local time.
The formation of Danantara in a relatively short time since the administration of President Prabowo Subianto is one of the important steps that can provide momentum for the economy.
According to Bommidala, the Prabowo administration has also brought stability, which has raised investor expectations for the Indonesian economy.
“One of the good things about President Prabowo is that he has brought a lot of stability and increased investor expectations for Indonesia. The biggest thing he could do in a short time after taking office was to form Danantara, something that many people had never previously thought of,” he said.
GMR itself has investments in Indonesia through a partnership with PT Angkasa Pura II to develop Kualanamu International Airport in North Sumatra. GMR established a joint venture company named PT Angkasa Pura Aviasi through a government and business entity cooperation (KPBU) scheme for 25 years, which began in 2022. In this partnership, GMR Airports holds a 49 percent stake, while the remaining 51 percent is controlled by PT Angkasa Pura II.
The strategic partnership is focused on transforming Kualanamu into one of the main international aviation hubs in the western region of Indonesia, while strengthening flight connectivity with South Asia. Kualanamu’s passenger terminal is currently designed to accommodate around 8 million to 9 million passengers per year. Through the partnership with GMR Airports, the development of Kualanamu Airport is being carried out in four phases with a target terminal capacity of 65 million passengers per year by 2047.