New sovereign wealth fund Danantara Indonesia will focus on large-scale projects generating good returns as it prioritises sectors championed by the government to increase economic growth and create jobs,

He wants to tap into the fund's assets -- planned to be more than $900 billion -- to boost Indonesia to developed economy status, despite expert concern about its governance.

JAKARTA-- Indonesia on Monday launched a much-anticipated sovereign wealth fund that government officials say is key to hitting President Prabowo Subianto's 8% target for economic growth.

Danantara Indonesia will invest $20 billion in a wide range of projects from metal processing to artificial intelligence, President Prabowo Subianto said.

The fund will invest US$20 billion (S$27 billion) in 20 projects to drive development in the nation. Read more at straitstimes.com.

Growing public distrust of the newly formed sovereign wealth fund, Daya Anagata Nusantara (Danantara), has sparked online discussions on switching banks and cash withdrawals, leading analysts to debate the actual risks of a potential bank run or the ensuing economic crisis.

Danantara Indonesia will invest $20 billion in a wide range of projects from metal processing to artificial intelligence.

Prabowo on Monday inaugurated the new fund, known as Daya Anagata Nusantara or Danantara, which is modeled partly on Singapore's investment arm Temasek.

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

Washington may not have a sovereign wealth fund, but almost half the U.S. states do. Indeed, the earliest precursor of a national sovereign wealth fund was established in the United States: in 1803, Ohio created a land trust to finance public education in the state.