Analysis: Structural challenges could limit Danantara’s economic impact

Indonesia’s sovereign wealth fund Daya Anagata Nusantara (Danantara) marked its first anniversary in February 2026 with plans to invest US$26 billion in downstream projects, equivalent to 1.7 percent of gross domestic product. While the scale is significant, questions remain about its broader economic impact amid limited state-owned enterprise (SOE) reforms and uncertainty over the implementation of its investment plans.