Finance

Archive: https://archive.is/2025.03.24-091009/https://www.ft.com/content/d90a401b-d086-44a9-b00a-adf46f00f450

President Prabowo Subianto launched the Danantara fund in February, bringing the country’s state-owned enterprises under one roof in a massive overhaul. The government expects the fund to boost economic growth by investing in strategic projects and industries. 

However, the fund’s direct control by Prabowo and the diversion of the SOE’s dividends from the state budget to the new fund have raised questions over political interference, transparency and lax governance. 

Those concerns have weighed on the Indonesian stock market, adding to mounting worries over an economic slowdown and a weakening fiscal position. Monday’s appointments failed to reassure markets, with Jakarta’s benchmark stock index tumbling as much as 4.7 per cent.