Indonesia's government is consolidating its state-owned assets under a new umbrella entity, Danantara Indonesia, with the aim of generating profit rather than merely spending. This approach, described as a state-level version of Dragon's Den, sees the government inviting entrepreneurs to pitch ideas and backing potential winners. The model is presented as a contrast to Britain's tendency to privatise profits and socialise losses.
Indonesia's Investment Strategy
President Prabowo Subianto is reining in bureaucrats and bringing money-spinning state assets under Danantara Indonesia. The country, with a population of nearly 300 million, GDP by spending power two places above Britain, and year-on-year growth of 5.5%, is also setting up the New Asia Forum, a sort of Great Exhibition inviting the world to pitch ideas. This event is expected to attract $30bn in investment over three days.
Investors from the US's $1.8tn Franklin Templeton Investments to Japan's Softbank, which runs the world's largest tech-focused venture capital fund, are expected to attend. Unlike in Britain, the Indonesian state will act as a hard-headed commercial player, investing alongside private companies, sharing risks, and taking a share of profits for the exchequer.
Red Tape and UK Delays
Subianto has also focused on slashing red tape to attract investors, a lesson Britain could learn. The Lower Thames Crossing, needed to ease the M25 chokepoint, has been on the books since 1973, with spades possibly hitting soil next year. Similar delays affect HS2, Sizewell C, Hinkley Point, Heathrow runway, and the Stonehenge Tunnel.
Jeremy Clarkson has made a second career out of red tape battles with West Oxfordshire District Council, noting that various officials must be consulted because "if they don't, they're admitting their jobs are pointless." Potential UK investor Jonathan Oppenheimer, whose family made its fortune through Anglo American and De Beers, complained Britain takes "30 years to do a nine-month project," while Jim Johnson, former chief executive of Hunting, described Britain as "less investable than Venezuela."
Budget Criticism
Chancellor John Healey's recent budget failed to strip away red tape, instead announcing plans to make AI planning tools available to every English council by the end of 2027. This is seen as creating more paperwork rather than axing quangos or rewriting planning law.
The article argues Britain needs a government that knows how to make money, not just spend it, and that treats business as neither a cash cow nor a basket case. Ministers should behave like serious investors, backing commercially viable projects and demanding proper returns, with taxpayers sharing in rewards when investments succeed.
