JAKARTA, President Prabowo Subianto said Indonesia’s new sovereign wealth fund, Danantara, will be a major engine for job creation and economic growth, managing assets of over $1 trillion.
In his first state address to parliament since taking office in October, Prabowo said Danantara will drive industrialization of natural resources and strategic sectors, creating millions of “quality jobs,” particularly in downstream industries. He added that processing minerals and mining products will boost export value and strengthen the economy, noting unemployment is now at its lowest since the 1998 Asian financial crisis.
President Prabowo Subianto greets his guests after delivering his annual state address at the People’s Consultative Assembly in Jakarta, Friday, Aug. 15, 2025.
As part of wider efforts, the government has launched 80,000 Merah Putih Cooperatives to support rural communities, farmers, and fishermen. These cooperatives supply subsidized essentials like rice, cooking oil, and fertilizer, while creating new jobs across villages.
In the first half of 2025, investment rose 13.6% year-on-year to Rp 942 trillion ($58.3 billion), generating 1.2 million jobs. The economy grew 5.12% in Q2 2025, and Prabowo said growth is set to accelerate despite global challenges. He also claimed his administration had saved Rp 300 trillion ($18.6 billion) in state funds by cutting wasteful spending, redirecting resources toward more productive uses.
