JakartaPost/Antara-Feb 28, 2025
Growing public distrust of the newly formed sovereign wealth fund, Daya Anagata Nusantara (Danantara), has sparked online discussions on switching banks and cash withdrawals, leading analysts to debate the actual risks of a potential bank run or the ensuing economic crisis. Public opinion has split on Danantara, which aims to consolidate major state-owned enterprises (SOEs) including those in the banking sector, at a time when state budget cuts have raised concerns that taxpayers’ money was not being put to good use. Fajar Adi, a university student in Jakarta, expressed his concerns over Danantara with The Jakarta Post on Thursday. The investment management firm projected to manage up to US$900 billion in assets without much transparency, he suggested, was a big gamble. “If it succeeds, the profits will be big. But if it fails, the losses will also be huge. I worry that if it collapses, millions of customers, including myself, could lose our money in state-owned banks,” he said. Launched earlier this week by President Prabowo Subianto with $20 billion in initial capital, Danantara is envisioned to be a driving force that will boost the country’s economic growth. The fund is set to focus on a wide range of strategic sectors, from the downstream nickel, oil refineries, petrochemicals, and renewable energy. But the public remained skeptical of its success given the country’s long history of mismanagement within its SOEs. Some even expressed concern that Danantara could turn out like Malaysia’s 1MDB fund embroiled in a massive corruption scandal. Prabowo’s Danantara faces uphill battle for investor trust. Using his X account with the handle name @PetrolWeeb , Fajar posted on Feb. 17: “What if we withdrew all our money from state-owned banks? That would be funny.” Initially meant as a joke, the post has garnered over 1 million views and 26,000 likes as of Thursday. It also draws mixed reactions from social media users. “Most people responded positively, with some planning to or have already moved their funds to private banks. Others even suggested a number of recommended private banks. But some accused me of being reckless, saying my post could trigger a bank run,” Fajar said, admitting that he had to set his account private for a while due to the accusations. The 21-year-old, however, argued he lacked the influence to cause the phenomenon. “That could only happen if someone powerful, like a wealthy businessperson, withdrew their money,” he said. Read more at:
