Danantara Accelerates BUMN Holding Integration to Boost Efficiency and Scale
The Daya Anagata Nusantara Investment Management Agency (Danantara) is accelerating its transformation into a state investment superholding. Its primary focus is not only improving the governance of state-owned enterprises (BUMN) but also accelerating strategic investments. The transformation is centred on strengthening synergy between holding companies, enabling more efficient investment, funding, and business expansion. This integration is expected to create business entities on a massive scale.
Through a ‘holdingisation’ scheme, state companies are being grouped into specific clusters. This strategy allows Danantara to manage state assets more efficiently, with greater focus and professionalism, akin to a global investment management institution. One key focus is the Pertamina Group, aimed at accelerating integration across upstream, downstream, petrochemical, and new renewable energy businesses. In early February, Pertamina officially merged three downstream subsidiaries: PT Pertamina Patra Niaga (PPN), PT Kilang Pertamina Internasional (KPI), and PT Pertamina International Shipping (PIS), with PPN becoming the surviving entity.
Danantara’s Chief Operating Officer, Dony Oskaria, stated that the merger was driven by inter-company inefficiencies and is expected to yield annual savings of tens of trillions of rupiah. Another integration involves the agricultural sector through PT Perkebunan Nusantara Group (PTPN III), which is consolidating its downstream business, transforming sub-holdings like PalmCo, and strengthening the downstream processing of national food and energy sectors. Furthermore, the integration of the Pupuk Indonesia holding aims to bolster food security by increasing the production of fertiliser and green ammonia. The company is committed to revitalising seven factories over the next five years, aligning with Danantara’s directive to optimise the BUMN asset portfolio for greater productivity and added value. Danantara is targeting a reduction in the number of BUMN subsidiaries and sub-subsidiaries from 1,043 entities to just 300 this year, as the current large number hinders effective monitoring.