Indonesian sovereign wealth fund Danantara will join the country’s Financial System Stability Board and be involved in the board’s decision-making process, its chief told reporters.
The board is a grouping of top financial authorities, led by the finance ministry and with the central bank, the Financial Services Authority and the deposit insurer corporation as members. The board’s activity and membership are regulated by law.
It meets at least every quarter to assess developments in the financial sector and the wider economy and it makes policy changes when necessary, in order to prevent or respond to a financial crisis.
After President Prabowo Subianto met with the board late on Monday, Danantara chief Rosan Roeslani said the fund has been asked to join the body.
“The board is asked to include Danantara in its every decision so that (Danantara) has a direct impact on the economy, not just the fiscal or monetary side,” he told reporters late on Monday.
Danantara‘s inclusion also comes after central bank chief Perry Warjiyo abruptly resigned, raising fresh investor concern about the bank’s policy autonomy.
The FSB is set to hold a meeting later on Tuesday, but no press conference is scheduled.
Danantara‘s role in Prabowo’s administration is rapidly expanding, becoming a key vehicle for the president to run his ambitious economic agenda even as investors weigh risks related to the fund’s governance and ability to execute plans.
Danantara was established by Prabowo’s administration, and was launched in early 2025.
Reuters
