JakartaPost/Bloomberg-May 29, 2025
The government has pushed back against reports that Bridgewater Associates founder Ray Dalio has backed out of an advisory role at Indonesia’s state asset fund Danantara and said it remained in contact with the United States hedge fund titan’s team. Analysts have noted a potential mismatch between Danantara’s mission and the expectations of the global figures President Prabowo Subianto has tapped as advisors and suggest the fund focus on tangible results rather than headline-grabbing names for credibility. Citing sources familiar with the matter, Bloomberg reported on Wednesday that Dalio had opted not to join Danantara’s advisory board two months after the government publicly announced his involvement. The reasons behind his decision remain unclear. Dalio’s name was nowhere to be found in a recent Danantara slide presentation shown to foreign business executives in Jakarta, according to the report. The updated lineup only included economist Jeffrey Sachs, former Capital Group equity portfolio manager Chapman Taylor, ex-Thai Prime Minister Thaksin Shinawatra and former Credit Suisse CEO Helman Sitohang. The decision would be a setback for Danantara, envisioned by Prabowo as a superholding to consolidate all state-owned enterprises (SOEs) and a national investment management firm akin to Singapore’s Temasek. Despite the fanfare of the launch in February, skepticism lingers. Analysts and investors have repeatedly called for greater clarity on the fund’s strategy and risk management, especially amid a volatile global economic environment. In March, the Jakarta Composite Index (JCI) nosedived more than 7 percent, its steepest intraday decline since September 2011, with some analysts linking the selloff to uncertainty surrounding Danantara’s direction. The plunge triggered a 30-minute trading halt, a measure not seen since the early days of the COVID-19 pandemic. In a bid to shore up confidence, Danantara unveiled what it dubbed “The Dream Team” of advisors and executives, including Dalio, in March. But Bloomberg reported the move may have been premature, as the appointment of Dalio had not been formalized. Read more at:
