Researcher: Danantara can serve as a bridge between government and investors

As an investment management agency with an investment mandate, Danantara can serve as an entity that bridges the gap between the Indonesian Government and investors.

Speaking in Jakarta on Thursday, William Simadipently, Head of Research at DBS Group Research, stated that Danantara could play a pivotal role as a bridge between the government and investors.

“Regarding the role of Danantara, it can essentially be described as a bridge acting as a Sovereign Wealth Fund in Indonesia. As an investment management agency with an investment mandate, Danantara can act as an entity that bridges the Indonesian Government with investors,” William said.

According to him, Danantara, as an investment management body, will fulfil its mandate as a professional co-investor in specific projects, such as renewable energy initiatives. This would provide assurance to both national and foreign private investors that investment activities are conducted professionally on a B2B (business-to-business) basis between investors.

“Therefore, it is similar to investing alongside an investment firm that might be privately managed. This could be one of the added values of Danantara’s presence, providing an extension of the government to conduct investments professionally,” he added.

Regarding governance, the primary objective for any investment management body is to create shareholder value.