Indonesia’s sovereign wealth fund may crowd out private sector


Danantara will consolidate seven major SOEs in the energy, mining, telecommunications and banking sectors. — The Jakarta Post

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

They pointed out that the way the government has structured the fund appears to make it a direct competitor of private companies, which could discourage them from making new investments.

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