World Bank Highlights Danantara's Key Role in Indonesia's Economic Growth by 2027
The World Bank states that investments by the Investment Management Agency (BPI) Danantara will be key in driving Indonesia’s economic growth in 2027. This statement was made in the World Bank East Asia and Pacific Economic Update April 2026 report, quoted on Thursday, 9 April 2026. In the report, the World Bank says that economic growth in most East Asia and Pacific countries will experience a slight correction this year. Indonesia, it continues, will also face economic growth challenges this year, particularly due to rising global energy prices. However, the World Bank assesses that Indonesia can overcome these challenges thanks to strong commodity receipts as well as investments from government initiatives, including those carried out by Danantara. According to the World Bank, these investments will provide significant impetus to economic growth in the following year. “In 2027, Indonesia’s economic growth will improve, supported by Danantara investments and monetary easing policies,” the World Bank stated. For information, this year Danantara will focus investments on downstreaming and strategic industries. At the beginning of this year, Danantara has started construction on six downstreaming projects worth USD 7 billion or equivalent to Rp110 trillion, such as the Smelter Grade Alumina Refinery (SGAR) Phase 2 project, aluminium smelter project, and biorefinery project. In addition, Danantara also plans to carry out groundbreaking for 21 other downstreaming projects this year. Besides highlighting Danantara’s role, the World Bank also mentions that deregulation policies and business permit simplification have the potential to provide positive impacts on Indonesia’s economic growth and employment absorption. This is expected to support various government fiscal initiatives in driving domestic economic growth. “Policy reforms, such as deregulation and business permit simplification as in Indonesia, can drive economic growth potential and productive job creation,” the World Bank added.