Danantara COO: Government Establishes Industrial Estate Holding Company for SOEs

Danantara Chief Operating Officer Dony Oskaria said the government has established a holding company named Kawasan Industri Indonesia as part of the restructuring and simplification of state-owned enterprise (SOE)-managed industrial estates. He added that the new holding aims to strengthen industrial estate management and attract investment across Indonesia. “The new entity will be called Kawasan Industri Indonesia, dedicated to managing all our industrial estates. These estates are expected to be a key draw for investors,” Dony said in Jakarta on Monday. He explained that current industrial estate management has been mixed with other business functions, necessitating a dedicated entity. “We’re changing the business model to focus solely on the estates, eliminating any overlaps,” he said. The new holding will manage SOE industrial estates through an integrated and professional approach. Dony added that Danantara will appoint specialised managers for industrial estate operations. “We’re looking for people who understand estate management, making it easier to handle,” he said. The establishment of the industrial estate holding was formalised through a shareholders’ meeting (RUPS) on Monday. Dony noted that several subsidiaries previously under Danareksa’s management have been transferred to Danantara as part of SOE restructuring. “Today, via RUPS, we now have a dedicated company for our industrial estates,” he said. He stated that the legal restructuring process aims to be completed by 2026, enabling the new holding to begin operations in 2027. Previously, SOE industrial estates were managed under Danareksa’s holding ecosystem. In 2024, Danareksa announced plans to modernise industrial clusters beyond land sales. Under the new structure under Danantara, Danareksa will refocus on asset management, while industrial estates will be under a dedicated holding for specialised management. In other restructuring steps, Dony said asset management business will fall under Danareksa. Meanwhile, SOE securities business will continue through two entities: Mandiri Securities and BNI Securities. “Securities will be split into two: Mandiri Securities and BNI Securities,” Dony said.