Analyst: Reinvesting SOE Profits Can Drive Economic Growth

State-owned enterprise (SOE) observer and Director of NEXT Indonesia Center Herry Gunawan has assessed that the policy of reinvesting SOE profits by the Danantara Investment Management Body has the potential to drive national economic growth.

According to Herry, reinvesting SOE profits can strengthen the gross fixed capital formation (PMTB) component, which is one of the important components of economic growth.

“In addition, the opportunity for labour absorption will also be greater,” Herry said in Jakarta on Friday.

He assessed that the policy needs to be monitored so that investments originating from SOE profits truly have an impact on the economy.

Besides driving economic growth and labour absorption, Herry said that investing SOE profits in the downstreaming sector also has the potential to increase foreign exchange earnings.

According to him, the downstreaming process makes the products produced have a higher selling value compared to commodities sold in raw form.

In his state address at the 2026 Annual Session of the MPR RI and the Joint Session of the DPR-DPD RI at the MPR/DPR RI Building in Jakarta on Friday, President Prabowo Subianto stated that the government, together with Danantara, is directing SOE profits to accelerate downstreaming.