Danantara Indonesia will invest $20 billion in a wide range of projects from metal processing to artificial intelligence, President Prabowo Subianto said.

Danantara, the nation's newly established sovereign wealth fund, may end up stifling growth instead of fuelling it, analysts warn.

JAKARTA] Indonesia launched the Danantara investment fund on Monday (Feb 24), a high-stakes, multi-billion-dollar initiative designed to consolidate the country’s state-owned enterprises (SOEs), while catalysing investment and fuelling the nation’s ambitious growth trajectory.

The fund will invest US$20 billion (S$27 billion) in 20 projects to drive development in the nation. Read more at straitstimes.com.

Prabowo wants to tap into the fund's assets -- planned to be more than US$900 billion -- to boost Indonesia to developed economy status, despite expert concern about its governance.

A sweeping overhaul of how Indonesia runs its powerful state companies will create a multibillion-dollar investment vehicle that could give President Prabowo Subianto a major cache of funds to deploy in his effort to supercharge growth.

JAKARTA-- Indonesia on Monday launched a much-anticipated sovereign wealth fund that government officials say is key to hitting President Prabowo Subianto's 8% target for economic growth.