Sri Mulyani Reminds The Strategic Role Of Danantara In Encouraging National Investment Improvement

Minister of Finance, Sri Mulyani Indrawati. (Photo: Doc. Antara)

JAKARTA - Indonesian Finance Minister Sri Mulyani Indrawati reminded the strategic role of the Anagata Nusantara (Dantara) Investment Management Agency in encouraging increased national investment.

According to Sri Mulyani, the presence of Danantara as a state-owned investment management agency must be able to become a catalyst, not even get rid of private roles.

"The role of the Danantara will greatly determine whether our investment increases, because Danantara is state-signed. If you are dominant without being able to attract (investors), then there will be crowding out," Sri Mulyani said at the Commission XI Working Meeting of the DPR RI in Jakarta, quoted by Antara, Friday, July 4.

On the other hand, he continued, if Danantara is able to attract the participation of more private investors, the institution can play a strategic role as a catalyst for economic growth.

"If Danantara's investment is able to attract the private sector, then Danantara can become a catalyst. So, this is something that needs to be conveyed. We have communicated continuously with the Danantara team," he explained.

For information, crowding out is a term that describes conditions when large government investments actually reduce the participation of the private sector in investment.

This warning was conveyed in the midst of weak growth in Gross Fixed Capital Formation (PMTB) or investment in the first quarter of 2025 which only grew 2.1 percent on an annual basis (yoy).

Although the national economy was still able to grow by 4.87 percent (yoy) in the first quarter of 2025 amid global uncertainty, the Minister of Finance assessed that weak investment growth is a signal that needs to be watched out for.

"If we want the economy to grow by 5 percent, usually investment must also grow by about 5 percent, because investment explains 28 percent of our GDP," he said.

Previously, the Minister of National Development Planning (PPN)/Head of Bappenas Rachmat Pambudy said that Indonesia needed an investment of Rp. 8,297.8 trillion to achieve the economic growth target of 6.3 percent by 2026.

"Based on the exercise carried out by Bappenas to achieve the economic growth target of 6.3 percent by 2026, the total required investment is estimated at IDR 8,297.8 trillion," he said.

Referring to the total investment needs, the required private investment is IDR 7,467.1 trillion or 89.99 percent, IDR480.8 trillion or 5.79 percent of State-Owned Enterprises (BUMN) investment, and IDR 349.91 trillion or 4.22 percent of government investment.

With limited government investment, BUMN and private investments are considered important.

Investment policies will be directed at building a conducive investment climate, attracting the involvement of SOEs and the private sector in the construction of high-value projects.

"We reiterate the importance of synchronizing planning and budgeting as well as taking sides with productive investments, especially in the agricultural, energy, renewable energy, manufacturing and digital economy sectors," said the Minister of VAT.