Prabowo Subianto controls Indonesia's largest sovereign-wealth fund
- Prabowo Subianto has launched a new sovereign-wealth fund called Danantara, which includes a large portfolio of state-owned enterprises worth $900 billion.
- He has been cutting Indonesia's budget, redirecting the saved cash into this new fund under his direct control.
- These developments raise concerns about financial oversight and accountability in Indonesia, as more of the nation's wealth now rests in the hands of a single individual.
On February 24th, 2025, Prabowo Subianto, the president of Indonesia, initiated a new sovereign-wealth fund known as Danantara. This fund inherently represents a significant shift in the management of Indonesia's wealth, as it now includes a substantial portfolio of state-owned enterprises valued at approximately $900 billion. Unlike its predecessor, this fund allows for reporting directly to the president, effectively bypassing the traditional control of the ministry of finance. The creation of Danantara comes in the context of ongoing budget cuts by President Subianto, which are interpreted as efforts to redirect resources towards his control. This decision follows a public commitment by Subianto during his campaign, where he promised free lunches for Indonesian children. However, the method of funding this ambitious program raised questions since he did not specify how the costs would be covered. In the months following his inauguration, concerns among analysts have grown regarding the broader implications of the wealth redistribution and governance strategies being implemented. The establishment of new funds under direct presidential control has sparked fears of diminishing financial oversight and accountability, leading to the potential for misuse or misallocation of public resources. As experts analyze the potential impact of these changes on Indonesia’s financial landscape, they express skepticism regarding the sustainability of Subianto’s agenda. Critics warn that without robust checks and balances, the concentration of power could lead to favoritism and poorly planned projects, which could ultimately hinder economic growth and strain public trust in government initiatives.