Antara News·Indonesia·Monday, October 26, 2026 at 11:12 PM UTC

Danantara eyes US$30 billion to accelerate Indonesia's industry growth

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Aria Ananda, Yashinta Difa

..Danantara is prepared to build entirely new domestic industries with strategic partners where local capabilities do not yet exist.

Jakarta (ANTARA) - Indonesia’s investment management agency, Danantara, aims to attract US$20 billion to US$30 billion in strategic industrial investments over the next two to three years.

Speaking at the C-Suite session of the Danantara Technology Innovation Investment Forum (DTIIF) 2026 in Jakarta on Monday (October 26), Danantara Chief Technology Officer (CTO) Sigit Puji Santosa outlined a pipeline of more than 40 industrial projects designed to support Indonesia’s industrial transformation.

“If we can reach US$20 billion to US$30 billion within the next two to three years, that would be excellent. But we aim for even more,” Sigit said, noting that several initiatives are already undergoing feasibility studies and front-end engineering design (FEED).

Danantara’s five-year development framework covers six key industrial clusters: energy; food and health technology; infrastructure, mobility and telecommunications; defense, maritime and aerospace; advanced materials; and electronics, machinery, financial technology and semiconductors.

The agency is prioritizing minerals, advanced materials and semiconductors to generate greater added value through downstream processing and advanced manufacturing, rather than relying solely on raw material extraction.

In the energy sector, planned initiatives include a 100-gigawatt (GW) solar power program, nuclear energy development, coal-to-dimethyl ether (DME) conversion and electric vehicle (EV) battery supply chains.

Digital infrastructure plans include a 1 GW data center, sovereign cloud computing, national artificial intelligence (AI) capabilities and six semiconductor development areas.

In the healthcare sector, Danantara aims to reduce Indonesia’s reliance on imported pharmaceutical raw materials, which account for nearly 94 percent of supply, by strengthening domestic medicine and vaccine production.

Beyond industrial facilities, Danantara, in partnership with Danantara Asset Management, plans to develop 10 smart cities and a dedicated technology corridor connecting the semiconductor, EV, defense and electronics industries.

To advance the roadmap, Danantara plans to strengthen existing state-owned enterprises (SOEs) and establish partnerships with domestic and international companies, universities and research institutions.

“We will go beyond signing memorandums of understanding (MoUs) and non-disclosure agreements (NDAs),” Sigit stressed, adding that Danantara is prepared to build entirely new domestic industries with strategic partners where local capabilities do not yet exist.

The initiative comes as Indonesia continues to record growth in downstream investment. According to the Ministry of Investment and Downstream Industry, downstream investment realization reached Rp480 trillion (approximately US$26.67 billion) from January to September 2026, an 11.3 percent increase year-on-year.

National investment realization totaled Rp1,539.2 trillion (US$85.51 billion) over the same period, equivalent to 75.4 percent of the government’s full-year target of Rp2,041.3 trillion (US$113.41 billion). The investment generated an estimated 2.19 million jobs.

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