Danantara COO Pursues Systematic Restructuring of State-Owned Enterprises

Jakarta (ANTARA) - Head of BP BUMN and Danantara COO Dony Oskaria is pursuing systematic steps for the restructuring or improvement of state-owned enterprise (SOE) governance, starting with ensuring accurate data on the total number of companies. “When initially counted, the figure kept changing, from 888, then 900, 972, 1,000, to 1,077. Finally, we now have the correct number. This means we did not even know the number of SOE companies,” Dony stated in a release received in Jakarta on Friday. Integrated data collection and consolidation of all corporate entities serves as the primary foundation before executing a massive restructuring of SOEs to optimise state assets. After holding a well-validated portfolio of data, Dony explained that the next agenda is to carry out a thorough and deep restructuring of the SOEs. He stressed that improving the governance of state-owned companies must not focus solely on resolving financial issues. According to him, the SOE restructuring process is not just about financial restructuring, but must go hand in hand with business restructuring so that the company is healthy down to its operational roots and business model. “Usually we do financial restructuring. I said I don’t want only financial restructuring, I want business restructuring. We change, we ensure the business is right first, then we inject equity if they need it,” Dony said. As a concrete example of this comprehensive approach, Dony highlighted the improvement process carried out at PT Krakatau Steel (Persero) Tbk. The restructuring of the national steel company is ensured not only to centre on reorganising its debt burden or funding structure, but also to focus on overhauling the company’s business model to make it efficient, competitive, and sustainable in the long term. This systematic and comprehensive step has succeeded in reviving loss-making SOEs into profitable ones. Krakatau Steel posted a profit of approximately Rp5 trillion.