Danantara Delivers Performance Proof, Turning Pessimism into Optimism

The Danantara Investment Management Agency was initially met with public doubt when it was first established. Questions arose over whether state assets could be managed more productively if consolidated under the Danantara umbrella.

Now, a number of performance indicators are beginning to answer those questions. The latest data shows several state-owned enterprises (SOEs) recording significant profit growth in the Danantara era.

Profit figures for a number of SOEs show positive momentum. As stated by President Prabowo Subianto in his annual address at the Parliament Building in Senayan on Friday (14/8), SOE profits rose significantly. These include PT Timah, up 804.7%, Pupuk Indonesia up 253%, Semen Indonesia up 196.5%, Pegadaian up 84.6%, Pertamina up 80%, Pelindo up 60.4%, BTN up 40.8%, and Bank Mandiri up 24.3%.

In addition, turnarounds were recorded at two SOEs that had previously posted losses, Krakatau Steel and Kimia Farma, which have now managed to book profits. Although the reporting periods differ, the direction of performance shows the same trend: positive figures.

Communications observer Hendri Satrio said Danantara’s important role is not merely about reviving SOE performance, but about restoring public optimism.

“So it is clear that Danantara is playing a very important and central role in Indonesia’s development going forward. At the very least in the first term of President Prabowo’s administration, and it is very likely to be continued in the future given the important and strategic role currently being carried out by Danantara,” he said, as quoted on Friday (14/8/2026).

The current improvement in SOE performance is also said to be no coincidence, but rather the result of a number of fundamental changes in SOE management under Danantara.

Meanwhile, Deputy Chairman of House of Representatives Commission VI from the Gerindra faction, Andre Rosiade, appreciated Danantara’s positive performance in reforming SOEs.

“That shows that the partnership between Commission VI of the Indonesian House of Representatives and Danantara Asset Management is a success. A success in how we partner and support each other to fix the existing SOEs,” said Andre.

According to him, the partnership began with the streamlining process being carried out by Danantara to reduce the number of SOEs so they become more effective and efficient.

“Third, fixing how to improve performance. And the basis for this is the amendment to the SOE Law that we carried out, which brought about Danantara, and the second amendment to further refine performance. I am very pleased that the President appreciates Danantara’s performance in partnership with us at Commission VI of the Indonesian House of Representatives,” said Andre.

With Danantara’s presence, SOEs are considered to be increasingly focused on their core business and reducing activities that do not create value. Streamlining means structures, processes and costs are reorganised to be leaner and more disciplined.

In addition, state assets in SOEs are optimised to generate returns, rather than merely being recorded on balance sheets.

With Danantara, synergy among SOEs is strengthened to open up opportunities for economies of scale and economies of scope. In essence, state assets are deemed insufficient if they are merely owned; they must generate value. This is where Danantara’s role is considered important.

House of Representatives member from the Golkar faction, Bambang Soesatyo, stressed that SOE reform is a bold and important step because too many unproductive state companies can burden state finances.

“SOEs must be filled by companies that are healthy, professional, productive and able to create added value. However, restructuring must also be carried out transparently, accountably and professionally so that the ultimate goal is truly to increase SOEs’ contribution to the economy and state revenue,” he said.

According to him, a successful SOE is not just about large assets. It is born from assets that are managed with discipline, an efficient organisation, and professional management.

This is where Danantara becomes important in ensuring that state wealth is not merely owned, but truly managed to create greater value.

This change is said to be not merely administrative restructuring, but a transformation in the way state assets are managed to create greater value for Indonesia.

If previously the public’s questions revolved around what makes Danantara different from SOEs of the past, today some answers are beginning to emerge. SOEs are increasingly focused, efficiency is being pushed further, assets are being optimised, and profitability is beginning to improve.

The most fundamental change highlighted is the shift in the measure of success from merely who manages state assets, to how productively state assets work for Indonesia.

This reflects a paradigm shift from state ownership of capital towards a state that actively manages its wealth capital, utilised as much as possible for the prosperity of the people. This is in line with President Prabowo’s address at the Parliament Building.

“81 years ago the nation’s founders established an ideal: an Indonesia that is sovereign, just and prosperous. An Indonesia whose wealth must be used as much as possible for the prosperity of the people and must not be enjoyed only by a handful of people,” said Bambang again.