Indonesia’s Danantara Fund Faces Pressure to Deliver Long-Term Returns

Pandu Sjahrir, head of Indonesia’s Danantara investment fund, stated the fund must demonstrate consistent success to survive beyond changes in presidential administrations. He addressed the Nusa Dua Forum outlining the need to build investor confidence through short-term gains and improvements to the stock market.

Danantara is currently prioritizing the demutualization of the Jakarta stock market and establishing Bali’s first financial centre. Sjahrir emphasized that the fund’s primary goal is profitability, believing strong returns will ensure its continuity regardless of political shifts.

Sjahrir made these remarks during a panel discussion alongside Tengku Zafrul Aziz, chairman of the Malaysian Investment Development Authority, highlighting a regional focus on attracting investment. The fund’s long-term viability depends on its ability to consistently generate high and sustainable returns.