Ray Dalio will no longer serve as an advisor to Indonesia’s new Sovereign Wealth Fund (SWF), Danantara, just two months after his involvement was publicly announced. The information was shared by a source familiar with the matter who requested anonymity due to the personal nature of the issue.

The founder of Bridgewater Associates decided not to join Danantara’s advisory board, despite the SWF previously celebrating his appointment alongside four other notable political and business leaders in March. The reason for his withdrawal remains unclear.

Dalio’s absence is another setback for one of President Prabowo Subianto’s flagship initiatives aimed at accelerating economic growth. Danantara, the newly formed SWF tasked with managing billions of dollars in state-owned enterprises and dividend revenues, has been facing concerns over its transparency and long-term strategic direction.

This situation has added volatility to Indonesia’s financial markets while several key policies remain under development.

In a presentation held by Danantara in May before a group of foreign business executives in Jakarta, the advisory board shown included four members — excluding Dalio. Listed members were economist Jeffrey Sachs, retired investment manager Chapman Taylor, former Thai Prime Minister Thaksin Shinawatra, and Helman Sitohang, the former Asia head of Credit Suisse Group AG.

Dalio declined to comment through his spokesperson. Taylor confirmed his role via his LinkedIn profile, while Sachs stated he joined on a pro bono basis without any compensation, and would provide economic insights as an advisor. Thaksin and Sitohang have not yet responded.

Danantara spokesperson Kania Sutisnawinata said via email that the organization is currently finalizing its programs and refining its business plans. She did not comment on Dalio’s status or his omission from the presentation.

The Jakarta Composite Index (JCI) dropped nearly 12% from the beginning of 2025 until March 21, the final trading day before Danantara officially revealed its leadership and advisory lineup the following Monday.

In an attempt to counter criticism and regain market confidence, one source said Danantara rushed to announce the names after preliminary discussions, even though formal appointments had not been finalized. No official confirmation letters were sent to Dalio or other advisors following the initial verbal offers.

On March 24, the JCI fell as much as 5%, marking its biggest intraday drop since 2020. The losses narrowed after the management and advisory appointments were made public, with the index closing down just 1.6% that day.

That same day, Danantara also announced that Yup Kim, Chief Investment Officer of the US$44 billion Texas Municipal Retirement System, would join the investment and portfolio management committee. Kim told Bloomberg via email that he had not formally accepted any position with the SWF.

Foreign Investment

In March, Danantara CIO Pandu Sjahrir stated that the SWF oversees assets worth US$900 billion, according to internal calculations, and is projected to receive US$20 billion in dividends within 12 months, which will need to be reinvested.

In the long term, Danantara executives hope to attract foreign capital through joint investment initiatives in Indonesia.

Danantara has recently secured a few deals. Last month, it reached an agreement with Qatar to raise up to US$4 billion for investment projects in Indonesia, marking Danantara’s first joint venture with a foreign investor.

On Sunday, Chinese Premier Li Qiang met with President Prabowo in Jakarta to discuss cooperation across various sectors. China’s US$1.3 trillion sovereign wealth fund and Danantara signed an investment agreement, according to the Indonesian Presidential Secretariat, though specific details were not disclosed.