Indonesia implements state-led economic programs via Danantara Fund

The Indonesian government is launching a series of large-scale programs that signal a shift toward state capitalism. These initiatives include the centralization of export trade by PT DSI, the establishment of the Indonesia International Financial Center (PFII) in Jakarta and Bali, and the planned OJK Mineral Exchange in 2027.

Other major projects include the National Electric Vehicle Program (MoLiNas) through PT Pindad, scheduled for 2028, and plans to overhaul poultry production and import millions of cattle. These programs are being funded through the Danantara Development Management Fund (DDMF) rather than the state budget (APBN).

While some initiatives like the electric vehicle program and poultry sectors have high potential due to existing private industry bases, significant challenges remain. The electric vehicle program faces hurdles regarding economies of scale and battery supply chain mastery. Food security plans involving subtropical cattle face biological risks such as heat stress and disease. Additionally, the success of the PFII and commodity exchanges depends on legal certainty and global liquidity, which cannot be established instantly.