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Investors are wary of Indonesia's new sovereign fund, hitting shares of state-owned banks

JAKARTA -- Two weeks ago, Indonesia launched a much-anticipated sovereign wealth fund, named Danantara, hoping in part to raise the odds of achieving President Prabowo Subianto's 8% growth target and also to emulate the success of Singaporean state investor Temasek Holdings.

So far, the fund's investment has not won the heart of domestic and international investors, sending the country's state-owned bank shares sharply lower.

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