Indonesia’s government will set up a state investment agency to manage holdings in some of the biggest state companies after parliament passed a bill on Tuesday approving the body, which is intended to operate like Singapore’s investment arm Temasek.
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The creation of the Daya Anagata Nusantara Investment Management Agency, or Danantara, was announced soon after President Prabowo Subianto took office in October, with the aim of improving the performance and returns from state investments.
The new agency is set to receive 1,000 trillion rupiah (US$61 billion) in initial capital, according to Darmadi Durianto, a lawmaker from the parliament’s commission overseeing the bill.
“Danantara is officially set up and formed in order to consolidate the management of state-owned companies and optimise the management of dividends and investments,” Erick Thohir, the state-owned enterprises minister, told parliament.
He said the agency would help the government reach Prabowo’s target of 8 per cent economic growth.
Government-owned stakes in Indonesia’s biggest lenders, Bank Mandiri, Bank Rakyat Indonesia, and Bank Negara Indonesia, as well as electricity utility PLN, miner MIND ID, energy firm Pertamina and telco company Telkom Indonesia are among those expected to be transferred to Danantara, media have reported.
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