Indonesia’s Prabowo Courts Top US Funds at $16T Strategic Investment Forum
- President Prabowo hosted a Washington forum through Danantara, linking Indonesia with $16T US investors in energy, infrastructure, and more, while pushing for a 7% ROA target amid economic reforms.
- Danantara CEO Rosan Roeslani and CIO Pandu Sjahrir spotlight long-term partnerships with firms like KKR and GIP at Prabowo’s US event, aiming for sustainable returns in key sectors.
- Experts like Josua Pardede say Danantara’s 7% ROA goal is ambitious but doable with strong governance, risk-sharing, and focus on high-impact projects like mineral downstreaming.
President Prabowo Subianto hosted the Presidential Forum on Strategic Capital & Partnership in Washington, DC, United States. Danantara Indonesia’s CEO Rosan Roeslani said the event brought together senior leaders from leading US investment firms to foster strategic capital partnerships and deepen long-term investment collaboration with Indonesia.
“This forum underscores Indonesia’s commitment to maintaining a stable, credible, and conducive investment climate as the foundation for sustainable capital partnerships and economic growth,” Rosan stated in a written release from Jakarta on Saturday (February 21, 2026).
Rosan noted that the forum featured C-level representatives from about a dozen of the world’s top global investment institutions, which collectively manage over $16 trillion in assets across various classes, including real estate, media and entertainment, energy, infrastructure, insurance, private equity, and digital infrastructure. Participating firms included Global Infrastructure Partners (GIP), KKR, General Atlantic, Warburg Pincus, Related Companies & Fund Management (RFM), Oaktree, Kayne Anderson, Eldridge Industries, and several other global players in private markets and real assets.
“This session marks a key step in advancing Danantara Indonesia’s global investment channeling strategy, as part of building a long-term portfolio and adopting an institutional asset management approach,” Rosan added.
Rosan emphasized that the forum reflects Indonesia’s dedication to forging long-term strategic partnerships with global institutional investors. He said Indonesia is entering a critical phase of economic transformation that demands strategic alliances, not just capital inflows.
“Through Danantara, we’re positioning Indonesia as a credible institutional partner capable of co-investing, collaborating, and creating long-term value aligned with national development priorities,” Rosan continued.
Rosan explained that Danantara Indonesia’s investment channeling strategy involves strengthening global exposure through partnerships with top fund managers to build a resilient, diversified portfolio in line with the country’s economic transformation agenda. This approach, he said, expands access to global investment networks, technology, and managerial expertise while ensuring every allocation supports priority sectors, industry growth, and domestic value creation.
Danantara’s Long-Term Investment Push
Danantara Indonesia’s Chief Investment Officer Pandu Sjahrir highlighted the strategic rationale behind the engagement. Pandu described partnerships with global fund managers as a cornerstone of Danantara’s long-term investment approach.
“Partnerships with global fund managers form the mainstay of Danantara Indonesia’s long-term investment strategy. Through targeted capital deployment, we’re aiming to develop a world-class portfolio while unlocking co-investment opportunities, knowledge transfer, and institutional capacity building,” Pandu said.
Pandu added that the focus spans high-impact sectors like energy, infrastructure, real estate, insurance, private equity, media and entertainment, and digital infrastructure—areas with strong long-term growth potential and strategic relevance to Indonesia’s economic transformation. This capital allocation reflects Danantara’s active asset management strategy, involving joint investments with leading global fund managers and platforms, including stakes in investment vehicles and portfolio companies in these sectors to build a diversified institutional portfolio.
“Our goal is to deliver sustainable long-term returns while ensuring Indonesia benefits from deeper integration into the global investment ecosystem,” Pandu continued.
Through ties with established platforms, Pandu noted, Danantara gains access to cutting-edge technology, sector expertise, and international networks that boost portfolio performance and long-term economic value. He said the forum reaffirms Indonesia’s commitment to a credible, transparent, and long-term oriented investment ecosystem, while strengthening alliances with global institutional partners to support national economic transformation.
Targeting 7% ROA
Earlier, in a speech at the Indonesia Economic Outlook 2026 event, President Prabowo Subianto directly instructed Danantara CEO Rosan Roeslani to hit a 7 percent Return on Assets (ROA) target. “I’m demanding a 7 percent ROA,” Prabowo stated firmly.
Responding with a smile, Rosan prompted Prabowo to press for a firmer commitment from Danantara’s top leader. “Why the smile? Danantara’s head—can you do it?” Prabowo asked.
Rosan promptly replied “Ready.” But the president pushed for more conviction. “That ‘ready’ lacks punch! Say it like ‘Ready!’ Trust me, you’ll surprise yourselves,” Prabowo remarked.
Permata Bank’s chief economist Josua Pardede believes the 7 percent ROA target is achievable for Danantara by bolstering asset quality and enforcing strict investment selection discipline. “To pursue this target realistically and sustainably, the key strategies involve strengthening asset quality and rigorous investment screening,” Josua told reporters in Jakarta recently.
Josua outlined several follow-up steps for Danantara. First, prioritize projects with reliable cash flows and high economic multipliers, such as mineral downstreaming and energy initiatives backed by clear markets and strong policies.
Second, balance the portfolio between higher-risk long-term projects and operational assets generating steady income to maintain return stability.
Third, enhance governance through transparency, independent oversight, and clear separation of commercial and non-commercial considerations.
Fourth, leverage established global investor partnerships to reduce self-financing burdens and share risks, thereby boosting net asset returns without excessive financial strain.
“With this approach, the 7 percent target acts as a catalyst for more disciplined, efficient, and performance-driven state investment management reforms over the long haul,” Josua said.
He views the president’s 7 percent asset return target as an initial signal of the performance standards Danantara must uphold. “Danantara is positioned as the state’s strategic investment arm with a broad mandate, covering cross-sector downstreaming, infrastructure financing, and global asset management,” Josua noted.
Realistically, though, Josua called the goal ambitious for an entity operating just a year in. Challenges include not just profits, but consolidating governance, aligning portfolios, strengthening risk management, and integrating projects still under development.
In the early stages, Josua explained, costs remain high, projects aren’t fully cash-flow positive, and many investments are long-term. High returns typically stabilize only after projects mature.
“That’s why this target should be seen as a medium-term strategic goal to pursue gradually, not a short-term pressure that forces excessive risks,” Josua concluded.
For context, Return on Assets (ROA) measures a company’s efficiency in generating net profit from its total assets. A higher ROA percentage signals more effective asset management.
Indonesianpost.com | Republika
