A sign for Indonesia's sovereign wealth fund Danantara is seen in front of its headquarters in Jakarta, Indonesia, February 28, 2025.
The agreement, formalized through a heads of agreement signed with GEM, aims to establish a sustainable industrial estate. Danantara’s investment chief, Pandu Sjahrir, stated: “There is a head of agreement that we just signed today with GEM in China ... essentially creating a green industrial estate.” He emphasized the project’s commitment to achieving net-zero carbon emissions and operating sustainably. The initiative involves collaboration with South Korea’s EcoPro and Indonesian nickel miners PT Vale Indonesia and Merdeka Copper Gold. Sjahrir noted: “GEM is doing it with Vale, with EcoPro, and also Merdeka and us.” Merdeka, based in Jakarta, stated it had no further details to share, and other partners did not respond to inquiries.
Danantara will manage 135 trillion rupiah ($8.31 billion) in investment funds this year, with 70 trillion rupiah sourced from dividends of state-owned enterprises. Additional funding comes from a $10 billion syndicated bank loan and sales of Patriot bonds to Indonesian companies. Launched in February, Danantara oversees government-owned companies with assets exceeding $900 billion, modeled after Singapore’s Temasek.
The Patriot bonds, aimed at raising 50 trillion rupiah by October, have attracted interest from prominent Indonesian business leaders, including Prajogo Pangestu of Barito Pacific Group, Garibaldi Thohir of AlamTri Group, and Franky Widjaja of Sinar Mas Group. Offered in 5- and 7-year tranches with a 2% interest rate, the bonds are positioned as a symbolic call for unity. Sjahrir stated: “It’s a call for the business community to stand together to contribute to our progress.” Widjaja’s spokesperson declined to comment, and others did not respond.
Beyond the nickel hub, Danantara is exploring investments in Hajj lodging in Saudi Arabia and upstream oil and gas projects in the United States. This partnership with GEM underscores Indonesia’s focus on sustainable industrial growth, utilizing its vast nickel resources to support global clean energy demands while fostering international collaboration.
