A prestigious lineup of global advisors is set to guide Indonesia’s newly established sovereign wealth fund, Danantara. Among them is Ray Dalio, the renowned founder of Bridgewater Associates, who will serve as a special advisor alongside figures such as economist Jeffrey Sachs and former Thai Prime Minister Thaksin Shinawatra. This collaboration aims to enhance the strategic direction and investment acumen of Danantara, which was launched last month by President Prabowo Subianto. The fund seeks to consolidate state-owned enterprises and spearhead transformative projects for the nation.

Danantara’s mission revolves around high-impact initiatives designed to elevate national prosperity through meaningful employment opportunities and sustainable growth. With an initial budget of $20 billion, the fund aspires to eventually oversee assets exceeding $900 billion. Its focus includes industrial modernization and resource processing ventures, aligning with global trends in sovereign wealth management. Such funds typically channel government-generated capital into diverse asset classes, including equities, real estate, and emerging markets. Comparatively, Singapore’s Temasek holds a portfolio worth $290 billion, while Norway boasts the world’s largest sovereign wealth fund valued at nearly $1.8 trillion.

As Dalio joins this ambitious endeavor, concerns persist regarding transparency and governance within the fund. Critics question whether centralized control under President Prabowo might undermine investor confidence. Indeed, recent shifts in Indonesia’s financial landscape reflect these anxieties, with the Jakarta Composite Index declining sharply amid foreign capital outflows totaling over $2 billion this year. Simultaneously, the Indonesian rupiah has weakened significantly, reaching its lowest point since the 1998 Asian Financial Crisis. Despite these challenges, the inclusion of seasoned experts like Dalio underscores a commitment to leveraging international expertise for long-term success, fostering optimism about Indonesia’s economic trajectory.