The success of the Danantara Indonesia Investment Management Agency\n(BPI) cannot be measured by the size of its investment returns or\ndividends in the short term. The institution\u2019s primary focus lies in its\nsuccess in transforming and restructuring state-owned enterprises\n(SOEs).<\/p>\n
Senior economist at Paramadina University, Wijayanto Samirin, stated\nthat Danantara\u2019s current investment priorities should be directed\ntowards supporting the SOE restructuring agenda through investments that\nare commercially viable and within the institution\u2019s capacity.\n\u201cDanantara\u2019s priority is to restructure SOEs. The investments made must\nbe feasible and match its capacity,\u201d Wijayanto told Bisnis on\nSaturday.<\/p>\n
According to him, Danantara\u2019s success indicators cannot be assessed\nsolely based on financial ratios such as return on assets (ROA) or the\namount of dividends generated in a short period. Instead, the primary\nmeasure of the institution\u2019s success is the extent to which Danantara is\nable to transform SOEs, from overhauling business models and\nstrengthening good corporate governance (GCG) to enhancing the\nprofessionalism of state-owned company management.<\/p>\n
\u201cDanantara\u2019s success cannot be measured in the short term by ROA or\ndividend value. The most important performance indicator is Danantara\u2019s\nsuccess in transforming and restructuring SOEs, including business\nmodels, GCG, and professionalism. Returns and economic impact can only\nbe measured in the years to come,\u201d he said.<\/p>\n
On another note, Wijayanto assessed that Danantara\u2019s strategy for\nattracting global investors should emulate the approach of Malaysia\u2019s\nsovereign wealth fund, Khazanah Nasional, which acts as an investment\npartner for foreign investors to encourage quality investment inflows\ninto the country. He believes the target previously conveyed by the\nMinister of Investment and Downstreaming\/Head of BPI Danantara, Rosan\nRoeslani, for around 80% of investments to be placed domestically is the\nright step.<\/p>\n
\u201cDanantara\u2019s mission should ideally be similar to Khazanah\u2019s, acting\nas a trigger for quality foreign investment into Indonesia by\npositioning itself as a counterpart to foreign investors. The target of\naround 80% domestic investment is appropriate,\u201d he said.<\/p>\n
However, Wijayanto cautioned that there are several challenges that\ncould potentially hinder Danantara\u2019s performance. The biggest challenge,\naccording to him, stems from political intervention and assignments\ndeemed commercially unfeasible or beyond the institution\u2019s capacity. He\nnoted that Danantara has recently been frequently asked to take over\ntroubled companies and handle various projects that may not have\neconomic viability.<\/p>\n
\u201cDanantara is being treated like a rubbish bin. If a company is about\nto go bankrupt, Danantara is asked to take it over. Danantara is also\nhandling unfeasible programmes such as waste-to-energy, pilgrim\naccommodation in Mecca, chicken farming, textile sector investments, and\nothers,\u201d he said.<\/p>\n
Furthermore, he assessed that Danantara\u2019s authority in determining\nthe boards of commissioners and directors of SOEs remains limited. This\ncondition is seen as an obstacle to effectively carrying out the\nfunction of transforming state enterprises. \u201cDanantara also appears not\nto have the authority to determine the BoC and BoD of SOEs. This is a\nmajor constraint for the organisation,\u201d Wijayanto stated.<\/p>\n
In a previous written statement, Danantara claimed that the\ntransformation being carried out by SOEs is beginning to show results.\nSeveral state-owned companies have recorded performance improvements\nthrough business restructuring, consolidation, and financial\nrehabilitation. Danantara stated that efficiency gains from this agenda\ncould reach Rp50 trillion per year.<\/p>\n
Minister of Investment and Downstreaming\/Head of BKPM and Chief\nExecutive Officer (CEO) of Danantara, Rosan Roeslani, said the SOE\ntransformation is not solely aimed at increasing profits but also at\nexpanding economic benefits for the public. \u201cSOEs do not solely pursue\nprofit; their presence must also be felt by the community, by the\npeople, in the form of providing equal opportunities for all levels,\nfrom MSMEs to commercial and corporate entities,\u201d Rosan said.<\/p>\n
According to him, the transformation undertaken by each SOE has a\ndifferent approach according to its respective business characteristics.\nTherefore, the performance now beginning to show is the result of a\nrestructuring process that has been underway for several years.<\/p>\n
One transformation was carried out by PT Pupuk Indonesia through\nchanging the subsidy scheme from a cost-plus model to a mark-to-market\nmodel. This change provides room for the company to manage commodity\nprice fluctuation risks while increasing profitability more\nadaptively.<\/p>\n
In the energy sector, PT Pertamina (Persero) consolidated by\nintegrating PT Pertamina Patra Niaga, PT Kilang Pertamina Internasional\n(KPI), and PT Pertamina International Shipping (PIS) into the Subholding\nDownstream. This move was aimed at reducing operational overlaps,\naccelerating decision-making, and strengthening the integration of the\ndownstream business chain.<\/p>\n
Meanwhile, PT Krakatau Steel showed restructuring results through\nimproved financial conditions. The company posted a profit of Rp635\nbillion up to April 2026, after recording a loss of Rp981 billion in the\nsame period the previous year. This improvement occurred alongside a\nreduction in debt from US$1.7 billion to US$1.1 billion.<\/p>\n
Performance improvements were also claimed in the industrial estate\nsector. Throughout 2025, the provision of industrial land increased by\n142 hectares. Revenue rose from Rp3.09 trillion in 2024 to Rp3.81\ntrillion in 2025, while profit increased from Rp830 billion to Rp1.3\ntrillion.<\/p>\n
On the other hand, PT Pelabuhan Indonesia (Pelindo) posted a profit\nof Rp1.48 trillion up to April 2026, a 169% surge compared to Rp550\nbillion in the same period.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/danantaras-success-lies-in-soe-restructuring-not-short-term-dividends-says-economist-1783230620", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }