TARGETING STRATEGIC SECTORS
Dividends from SOEs will be reinvested into strategic sectors instead of directly returning to state coffers.
On whether there is a potential risk of wasting valuable investment capital if an SOE being rescued continues to record losses, such as Garuda Indonesia, Pandu said the idea is to accelerate the distressed flag carrier’s long-term transformation.
Danantara has recently extended a US$405 million loan to Garuda.
“We’re actually very excited about the prospect because the wonderful thing about Indonesia, even the domestic market, is that it is so large and underpenetrated, and there’s so much demand domestically as well,” he added.
“We want to be able to have more foreigners come to visit and see how wonderful Indonesia is, and the best way to do it is actually through the airline business.”
Danantara is prioritising investments in key sectors such as digital infrastructure, healthcare and food and energy security, said Pandu, a seasoned investor and entrepreneur in the region.
“In each of these sectors, we need to create, in a way, a global mindset, large size companies,” he added.
“So, we will invest with partners. And I think a lot of what we do we will do through partnership that can bring know-how.”
During his state visit to Singapore earlier this month, President Prabowo said he looked forward to close collaboration between Danantara and Singapore’s Temasek Holdings, particularly in renewable energy and sustainable industrial zones.
“We’re open,” said Pandu. “We already know the style of investing. So, I think that will be a straightforward collaboration.”
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