Danantara Boss Reveals Latest News on the Formation of a State-Owned Textile Enterprise

Jakarta, CNBC Indonesia - The COO of BPI Danantara, who is also the Head of BP BUMN, Dony Oskaria, has revealed the latest developments regarding plans to form a state-owned enterprise in the textile sector. According to him, the matter is still in the discussion process.

“The textile SOE is still under study. We are first looking at it, examining the market sizing, and also because this is one of the industries that relates to many job opportunities. So, it comes back to this: there is business in it, the SOE enters industries that indeed provide significant economic impact for us, especially in opening up employment,” said Dony at the Presidential Palace Complex on Tuesday (7/4/2026).

According to Dony, the textile industry was once a strength of Indonesia. However, many private textile companies have collapsed, necessitating a role from the state.

“As we know, textiles have long been one of Indonesia’s strengths, right? If the private sector is not that strong, then perhaps if needed, we must enter. But we are still studying it; it hasn’t started yet,” he explained.

He also outlined several options to be pursued, such as taking over assets from the textile giant PT Sri Rejeki Isman Tbk (Sritex). However, this is still in the calculation process, as Danantara does not simply want to enter without making the textile business more competitive.

However, according to him, one of the considerations is the creation of a large number of jobs from this industry. The only issue is that market share remains a stumbling block, as many legal imported textile products leak into the market.

“Actually, we have a competitive advantage, right: labour costs, and also a large market size. Of course, the regulations must also be examined, especially the import issues; those leakages must be protected. So that domestic companies can compete,” he said.

Furthermore, according to Dony, there is no timeframe yet for when this SOE will be formed. This is because at Danantara, as well as at BP BUMN, there are still many issues with other red-plate companies that need to be resolved.

“Because friends can see, 1,101 companies that I have to handle one by one, tidy up one by one; then we choose the ones with high priority first. We finish the big ones first, then the ones with lower priority,” said Dony.