Latest news with #PanduSjahrir
CNA
27-06-2025
- Business
- CNA
Interview with Pandu Sjahrir, chief investment officer of Indonesian sovereign wealth fund Danantara
The creation of Indonesia's second sovereign wealth fund Danantara Indonesia has sparked both optimism and skepticism. CNA's Chandni Vatvani talks to Danantara's chief investment officer Pandu Sjahrir and finds out how the fund plans to achieve its objectives and what it is doing differently to prove critics wrong.
Business Times
26-06-2025
- Business
- Business Times
Indonesia's sovereign wealth fund looks to invest abroad, with sights set on energy assets
[JAKARTA] Indonesia's sovereign wealth fund, Daya Anagata Nusantara (Danantara), is exploring global investment opportunities as part of its strategy to strengthen the country's position in the international market. And one potential target, said its chief investment officer (CIO), is the energy sector in the United States. Speaking at the Asia Economic Summit in Jakarta on Thursday (Jun 26), Pandu Sjahrir emphasised that any overseas investment must deliver strategic value to Indonesia, particularly through technology transfer and capacity-building. 'We can invest anywhere in the world, but if it's outside Indonesia, there must be a clear strategic benefit, whether it's knowledge transfer, technology access, or strengthening Indonesia's role in the global value chain,' he said. He pointed to the energy sector as an example, noting that Indonesia still imports a significant amount of crude oil from the United States. 'So why not own a foreign oil company and buy from ourselves? That could be a strategic move to support our energy security.' Danantara manages US$900 billion in assets and oversees around 50 state-owned enterprises (SOEs) along with more than 800 subsidiaries. The sovereign wealth fund views global expansion as a key strategy for scaling up and enhancing the competitiveness of Indonesian SOEs, said Sjahrir. ' We can invest anywhere in the world, but if it's outside Indonesia, there must be a clear strategic benefit, whether it's knowledge transfer, technology access, or strengthening Indonesia's role in the global value chain. ' — Pandu Sjahrir, CIO of Danantara Its CEO, Rosan Roeslani, indicated earlier this month that Danantara planned to allocate up to 20 per cent of its capital to overseas investments, signalling a tactic to capture global assets that align with Indonesian interests. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up In a recent move reflecting this, the fund played a key role in supporting state-owned energy giant Pertamina's acquisition of a 20 per cent stake in Citicore Renewable Energy Corporation, a Philippine renewable energy company, in a transaction valued at US$120 million. Sjahrir described it as a strategic investment for Pertamina to strengthen its presence in the global oil sector. More global talent During the panel, the CIO noted that while Danantara continued to prioritise domestic investments, it also recognised the importance of international opportunities to achieve long-term goals – particularly amid increasing global competition for talent and advanced technologies. 'This is also about human capital development. One of our top priorities is to boost productivity per capita, and that's not possible without knowledge transfer from abroad,' he added. Danantara has already begun hiring international talent for key positions within the organisation. This move, Sjahrir said, is aimed at accelerating capacity-building and improving the operational efficiency of the companies under its management. Recently, the fund invited Sunata Tjiterosampurno, managing director and co-CIO at Northstar Group – which is a private equity firm and early backer of Gojek – to join. The fund also plans to recruit foreign talent to support its flagship airline, Garuda Indonesia, to which it recently extended a US$405 million capital loan. 'We now have a double-digit number of foreign talents working within Danantara. Depending on their roles, they contribute valuable expertise and help with knowledge transfer,' Sjahrir said.
Nikkei Asia
25-06-2025
- Business
- Nikkei Asia
Indonesia wealth funds to double down on energy transition
Energy INA to boost renewables portfolio; Danantara eyes power grid investment Ridha Wirakusumah, CEO of Indonesia Investment Authority, left, and Pandu Sjahrir, chief investment officer of Danantara, speak at the FT & Nikkei Energy Transition Summit: Asia in Jakarta on June 25. (Photos by Dimas Ardian) ISMI DAMAYANTI JAKARTA -- Senior executives at Indonesia's two sovereign wealth funds on Wednesday said they will expand investment in clean energy transition projects this year, citing plans ranging from electric vehicle supply chains to power grid upgrades. Ridha Wirakusumah, CEO of the Indonesia Investment Authority, or INA, said renewable energy projects currently make up 12% of its $4 billion investment portfolio. INA is aiming to increase that proportion to between 15% and 20% by the end of 2025.
The Star
25-04-2025
- Business
- The Star
Indonesian sovereign wealth fund entry into capital market raises long-term risks
JAKARTA: Danantara's planned entry into the domestic capital market is expected to significantly help stabilise the local stocks and bonds market, especially at times of volatility, but some have also warned that the move could disrupt the sovereign wealth fund's (SWF) focus on its much needed long-term projects for the economy. The move comes after the country's stock market and currency emerged as one of Asia's worst-performing this year amid uncertainties due to the United States' wide-sweeping tariffs and concerns over the country's fiscal policy. The IDX composite, the country's benchmark, fell to its lowest level of the year at 5,968 points on April 9, the second trading day after the announcement, marking a 15.9 per cent drop from its position at the start of 2025. Meanwhile, the rupiah momentarily hit around Rp 17,000 per US dollar on April 7, as it extended depreciation against the greenback since the beginning of the year. Danantara's chief investment officer Pandu Sjahrir said on April 14 that the fund was ready to act as a 'liquidity provider' for the domestic capital market. He noted that dividends from state-owned enterprises (SOEs), a key source of the fund's capital, are expected to start flowing later this April. He vowed to be careful in the placement of funds, saying 'what's important is the return', while ensuring the fund would start weighing investment in real strategic projects. Fikri C. Permana, an economist at local brokerage KB Valbury Sekuritas, said Danantara's intervention could serve as a positive sentiment for the IDX. He likened the fund's potential role to that of the Workers Social Security Agency (BPJS Ketenagakerjaan), which had limited activity in the stock market due to underwhelming returns from its existing investments. He also said Danantara should consider extending its role as a long-term institutional investor in the market, citing attractive return prospects in the future. 'Government-backed institutions in other countries have taken similar steps, even Japan's central bank invests in equities,' he told The Jakarta Post on Tuesday (April 22). On April 7, China intervened to support domestic stocks plunging on US tariff woes, with a sovereign wealth fund increasing its holdings in equities and saying it would defend market stability, Reuters reported. To manage risk, he recommended that Danantara diversify beyond its current holdings in SOEs' shares and consider investing in privately owned, publicly listed companies. 'They could look into sectors aligned with government programs, such as the free nutritious meal program, where profits from these firms would eventually flow back to Danantara in the form of dividends,' he added. Felix Darmawan, an economist at Panin Sekuritas, agreed that Danantara's active presence in the capital market could help stabilise share prices of publicly listed SOEs amid a bearish trend fueled by sustained foreign capital outflows. He noted that the fund's support should not be limited to banking stocks, which have an outsized influence on the IDX Composite, but should also extend to commodities such as gold and coal, as well as the construction sector. '[Still,] if Danantara wants to maintain investor confidence, especially from foreign investors, it must also push for greater transparency, stronger governance and better management within SOEs, not just intervene in the market,' Felix told Kontan on Tuesday. Both the IDX and the Financial Services Authority have welcomed Danantara's entry into the market, calling it a timely move to reinforce investor confidence and market resilience. Following the announcement of Danantara's plan, the IDX Composite continued its upward momentum, climbing 6.6 per cent to close at 6,634.4 on Wednesday, despite no official confirmation that the fund had already begun intervening in the market. Frederic Neumann, chief Asia economist at HSBC, acknowledged that short-term market interventions by government agencies can provide temporary relief for equity markets. However, he expressed skepticism about their long-term effectiveness. 'As an economist, I'd say that no matter the resources at your disposal, channeling them into strengthening growth fundamentals tends to yield better long-term outcomes,' Neumann told the Post on Tuesday. 'Indonesia has tremendous growth potential, and as long as the fundamentals are sound, the market should be able to correct itself.' In response to external pressures, such as US' blanket tariffs, Neumann urged the government to use its fiscal resources on investments that support sustainable economic growth as well as introducing deregulation and pro-business policies. Rully Wisnubroto, senior economist at Mirae Asset Sekuritas Indonesia, acknowledged that market intervention could be 'understandable' in the short term to stabilise prices and ease investor anxiety. However, he cautioned that such measures should not become a long-term strategy. He also flagged potential risks for Danantara to enter the market during a period of heightened volatility. "Frankly, I don't agree with using SOE dividends [collected by Danantara] to support market liquidity," Rully said during a press conference on April 17. "Those funds were meant to drive economic growth [through productive investments], as originally promised." - The Jakarta Post/ANN
Yahoo
29-03-2025
- Business
- Yahoo
Indonesia Wealth Fund Danantara CIO on Investor Concern
Pandu Sjahrir, Chief Investment Officer of Daya Anagata Nusantara, speaks exclusively to Bloomberg Television about the Indonesian sovereign wealth fund's ambitions and operations. The fund, known as Danantara, has a direct reporting line to President Prabowo Subianto. Investors have sought clarity about its corporate structure, as worries about Prabowo's policies spark a wider selloff of Indonesian equities. Sjahrir speaks to Haslinda Amin about Danantara's team, the concerns around transparency, and what he considers to be the long-term successful outcome for the fund. (Corrects spelling of name in last sentence.) Sign in to access your portfolio
