Danantara Prepares 20 Percent Of Capital For Foreign Investment

JAKARTA - Danantara Chief Executive Officer (CEO) Rosan Roeslani stated that 20 percent of Danantara's total capital will be allocated for investment abroad to expand business coverage globally.

Rosan said 80 percent of Danantara's total capital would be focused on domestic strategic projects, especially priority sectors for national development and the remaining 20 percent would be allocated abroad.

"We focus on this intermediary, of course we invest at the beginning in Indonesia. But we can see, maybe we can see between 80-20 percent. 80 percent is in Indonesia, 20 percent we invest abroad," said Rosan when speaking at an activity entitled Entrepreneurial Leadership in Action: Steering Indonesia's Investment and Industrial Renaissance held by Universita Paramadina in Jakarta, Friday, June 13, reported by ANTARA.

According to Rosan, the main focus of early investment remains in Indonesia because of the huge potential and development needs in various important sectors to support economic growth targets of up to 8 percent.

However, Rosan assessed that foreign investment is also important to strengthen Danantara's position as a global player and support the increase in the value of the company in the long term.

With a capital of up to 7 billion US dollars sourced from dividends, Danantara is said to be able to make leverages up to five times, which is equivalent to the potential investment fund of 35 billion US dollars per year.

If calculated within five years, the potential of funds that can be moved reaches 175 billion US dollars and will be used to create more jobs.

"If within 5 years, it means 35 billion US dollars x 5, how much? 175 billion US dollars, once 5 years that I can use to invest. Again to create more jobs," he said.

Rosan emphasized that investment is the spearhead of economic growth because it is able to drive the real sector, create jobs, and encourage people's welfare in a broad and sustainable manner.

"Investment is very important and is one of the spearheads for the economy, job creation, and others," said Rosan.