The Indonesian Investment Authority (IAI) Danantara, which was established as one of President Prabowo Subianto’s first initiatives since taking office on October 20, aims to consolidate the assets of ministries and state-owned enterprises (SOEs). ‘State) and optimize their value, like Temasek of Singapore.

However, experts see a risk of overlap with the functions of the Ministry of Public Enterprises as well as those of the Indonesia Investment Authority (INA), the country’s existing sovereign wealth fund.

Muliaman Darmansyah Hadad, sworn in by President Prabowo Subianto as head of IAI Danantara on October 22, explained that the agency would act as an investment manager for government assets “separated” from the state budget, including assets currently managed by ministries and state-owned enterprises, which would allow the agency to evolve into a Temasek-style investment entity.

“The process will be gradual, starting with the creation of the agency and accompanying regulations,” he said on Tuesday, as quoted by Kontan.

After a meeting with the president on Monday, Muliaman said Prabowo had asked him to “prepare well” for the organization’s launch scheduled for November 8. CNBC Indonesia reported.

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He added that the creation of IAI Danantara required a review of the Public Enterprises Act.