Danantara plans to invest $5 billion in Indonesian companies — Fortune

Indonesian sovereign fund Danantara plans to invest $5 billion in the country’s companies over the next six to nine months. The fund’s chief investment officer, Pandu Sjahrir, told Fortune during the DBS Asia Future Forward conference in Singapore on October 12.

According to Sjahrir, the fund will focus on the fundamentals of Indonesian businesses, which, in his view, continue to grow steadily. He noted that Danantara should support and invest in strong companies despite changing market sentiment.

MSCI proposal and index decline

On October 15, MSCI proposed downgrading Indonesia’s status from an emerging market to a separate standalone category. If such a decision is made, Indonesian stocks could be excluded from MSCI emerging markets and frontier markets indexes, while investment funds could reduce their investments in the country.

Indonesia has until April 2027 to carry out reforms. According to Fortune, news of MSCI’s proposal caused the benchmark Jakarta Composite Index to fall by 11.6%, and it has declined by more than 40% since the start of the year. Sjahrir said shares of Indonesian consumer companies have generally lost more than 20%, while securities of companies linked to the mining and energy sectors have fallen even further.

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Infrastructure and natural resources

Danantara, established by Indonesian President Prabowo Subianto in 2025, has four areas of activity. Its asset management division oversees and corporatizes more than 1,000 state-owned enterprises, while its investment arm works with bonds, public markets and equities in Indonesia and abroad.

Danantara’s development fund finances long-term infrastructure projects, including a giant sea wall project along Java’s northern coast and a coal gasification program. Another division, Danantara Resources Indonesia, is set to become fully operational in January and centralize exports of coal, palm oil and ferroalloys through a digital platform.

In early October, Danantara also announced a $250 million investment in U.S. oil and gas producer HighPeak Energy. Sjahrir explained that the partnership is intended to help the fund gain experience in shale resource extraction technologies.