Published on April 28, 2026, by TEMPO
By Anastasya Lavenia Yudi
Fitch stated there are concerns that Danantara could potentially be used to finance government programs.
Debt rating agency Fitch Ratings has outlined a number of investor concerns regarding Danantara. Danantara was one of the points Fitch considered when it cut Indonesia’s debt outlook from stable to negative in March 2026.
“From our discussions with various investors, several potential issues that emerged were related to governance,” said Samuel Kwok, Head of International Public Finance Asia-Pacific at Fitch Ratings, when met by Tempo at the St. Regis, Jakarta, on Thursday, April 23, 2026. He said there is a tendency for reporting to be concentrated, as Danantara reports directly to the president.
Furthermore, there are also concerns that Danantara could potentially be used to finance government programs. For example, Samuel said, when there is a gap between the budget and government spending needs, Danantara is used to cover some of the needs.
Samuel emphasized that in making the assessment, Fitch considered the clarity of Danantara’s position as a sovereign wealth fund. “If an entity claims to be entirely commercial, but in reality isn’t, then expectations can be misplaced. This can lead to surprises, because investment decisions can be influenced by political factors, not just returns,” he said.
However, Samuel stated that Danantara was recently established and is still in its infancy. Therefore, its track record is still limited to evaluate. He also stated that concerns about Danantara have also arisen for sovereign wealth funds in other countries.
Meanwhile, Danantara Chief Investment Officer Pandu Sjahrir said that his institution was tasked with creating a world-class sovereign wealth fund. “For the first time, we are consolidating all state-owned enterprises. Of course, it’s a major political decision to make, but we want to implement it so that it can generate profits,” Pandu said during the Fitch on Indonesia 2026 discussion at the St. Regis, Jakarta, on Thursday, April 23, 2026.