Indonesia's Sovereign Fund Danantara Joins Financial System Stability Board

DANANTARA - JAKARTA, July 28 - 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.

Here are the details:

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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 fiscal or monetary side," he told reporters late on Monday.

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On Tuesday, Finance Minister Purbaya Yudhi Sadewa clarified in a press conference Danantara did not and would not have a voting right in the board's policy.

The board held its first meeting on Tuesday with Danantara executives in attendance as guests who were asked to provide feedback on behalf of the business community for the purpose of the board's policymaking, Purbaya said.

Danantara's inclusion also comes after central bank chief Perry Warjiyo abruptly resigned, raising fresh investor concern about the bank's policy autonomy.

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.