According to Bloomberg citing sources close to the matter, Ray Dalio, the founder of Bridgewater Associates, opted not to be part of Indonesia’s Danantara’s advisory team. Meanwhile, another report stated that the sovereign fund jumped the gun in his announcement before the finalization.
Danantara is Indonesia’s sovereign wealth fund with an aim to oversee assets more than $900 billion, seek US$20 billion in reinvested dividends, and achieve 8% economic growth by 2029. Its advisory board is composed of several financial experts, but now, does not include Dalio.
The fund’s spokeswoman only stated the finalization of the fund’s programs and business plan but did not mention Dalio’s involvement. As for the American billionaire himself, his spokesperson did not make any comment. The reason for this withdrawal remains clouded. Still, this is not the first time he steps away.
Back in 2020, Dalio walked away from a partnership in Connecticut, after spending $100 million on it, citing political interference. This Indonesian fund also faces a similar issue as investors became concerned over its transparency and potential political interference.
Dalio’s expertise, especially with China, helps attract foreign investment. Furthermore, when Indonesia announced his name and others as part of the dream team, the Jakarta Composite that was plunging heavily during the session managed to settle down 1.6% instead of session’s low of 12%.
Now, without him, achieving the goals meant for Danantara may become more challenging. Still, two prominent experts; Jeffrey Sachs and Thaksin Shinawatra remain in the fund.
