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Indonesia outlines joint role for state budget and Danantara in growth

Finance Minister Suahasil Nazara said fiscal and investment strategies should be aligned to support national development and attract private investment.

By Maya Santos

Illustration of government budgeting and investment planning
Photo: CNBC Indonesia

Indonesia’s government is coordinating its state budget and Danantara investment strategies to support economic growth, Finance Minister Suahasil Nazara said at KADIN’s national leadership meeting on 30 October 2026.

Suahasil described the budget and Danantara as complementary instruments of the state. He said the budget has three main responsibilities: stimulating the economy, protecting the public and maintaining confidence or credibility.

To generate sustainable growth, the budget needs to encourage economic activity and investment in cooperation with other parties, particularly Danantara, he said. He described Danantara as an investment catalyst able to mobilise strategic capital for projects with high added value.

According to Suahasil, Danantara is an independent, profit-oriented institution that supports the government’s strategic programmes. Its roles include encouraging the private sector to drive growth, backing strategic investment and coordinating support for priorities including food security, energy, downstream processing and industrialisation.

He outlined four aims for fiscal coordination with Danantara: stronger and more sustainable growth; alignment of fiscal and investment strategies with national development; stronger investment, better management of state resources and greater financing capacity; and more economic value from productive investment.

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