Danantara's 2026 Investment Plans Raise Economic Concerns

Ambitious Projects Under Scrutiny

Danantara Investment Management, led by the Badan Pengelola Investasi (BPI) Danantara, recently presented its 2026 Work Plan and Budget (RKAP) to Commission XI of the DPR RI in a closed-door meeting. The proposed projects for the upcoming year include controversial initiatives such as Waste to Energy (WtE) projects and the development of Kampung Haji Indonesia in Makkah.

Economic Viability Questions

Prominent economist Wijayanto Samirin from Universitas Paramadina has raised significant concerns about the economic viability of these projects. Samirin argues that initiatives like WtE and Kampung Haji Indonesia may not generate satisfactory returns for Danantara, an investment entity established under the leadership of President Prabowo Subianto. The economist's assessment has brought the financial prudence of these large-scale projects into question.

Strategic Investment Considerations

While the projects are ambitious and align with national development goals, their financial returns remain a critical concern for investors and stakeholders. The Waste to Energy projects, for instance, while environmentally beneficial, often require substantial initial investments and may have lengthy payback periods. Similarly, the Kampung Haji Indonesia project, while serving religious and social purposes, may face challenges in generating direct financial returns.

Implications for Danantara's Portfolio

The success of Danantara's investment portfolio in 2026 will significantly depend on the financial performance of these major projects. As such, careful evaluation and risk assessment will be crucial in determining their long-term viability and impact on Danantara's overall returns.