Danantara Delivers Performance Proof, Turning Pessimism into Optimism

The Danantara Investment Management Agency was initially shrouded in public doubt when it was first established. Questions arose as to 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. Recent data shows several state-owned enterprises (BUMN) recording significant profit growth in the Danantara era. Profit figures for a number of BUMN show positive momentum. As conveyed by President Prabowo Subianto in his annual speech at the Parliament Building in Senayan on Friday (14/8), BUMN profits rose significantly. These include PT Timah’s profit, which rose 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%. Additionally, a turnaround was recorded for two BUMN that were previously loss-making, Krakatau Steel and Kimia Farma, which have now managed to book a profit. Although the recording periods vary, the direction of performance shows the same positive trend. Communication observer Hendri Satrio said Danantara’s important role is not merely about reviving BUMN performance, but restoring public optimism. “So it is clear that Danantara is playing a very important and primary role in Indonesia’s future development. At 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 BUMN performance is also said to be no coincidence, but rather the result of a number of fundamental changes in the management of BUMN under Danantara. On the other hand, Deputy Chairman of House of Representatives Commission VI from the Gerindra Party faction, Andre Rosiade, appreciated Danantara’s positive performance in reforming BUMN. “That shows that the partnership between the House of Representatives Commission VI and Danantara Asset Management is a success. A success in how we partner and support each other to fix the existing BUMN,” said Andre. According to him, the partnership started from the streamlining process being undertaken by Danantara related to reducing the number of BUMN to make them more effective and efficient. “Thirdly, fixing how to improve performance. And the basis for this is the amendment to the BUMN law that we made, which brought about Danantara, and the second amendment to further perfect performance. I am very pleased that the President appreciates the performance of Danantara in partnership with us in House Commission VI,” said Andre. With the presence of Danantara, BUMN 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. Furthermore, state assets in BUMN are optimised to generate returns, not just be recorded on the balance sheet. With Danantara, synergy between BUMN is strengthened to open up opportunities for economies of scale and economies of scope. In essence, it is deemed insufficient for state assets merely to be owned; they must generate value. This is where Danantara’s role is considered important. House member from the Golkar Party faction, Bambang Soesatyo, asserted that BUMN reform is a bold and important step because too many unproductive state companies can actually burden state finances. “BUMN must be filled by healthy, professional, productive companies capable of creating added value. However, restructuring must also be carried out transparently, accountably, and professionally so that the ultimate goal truly increases BUMN’s contribution to the economy and state revenue,” he said. According to him, a stellar BUMN is not just about large assets. It is born from assets 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 just an administrative restructuring, but a transformation of how state assets are managed to create greater value for Indonesia. If previously the public’s questions revolved around what makes Danantara different from past BUMN, today some answers are beginning to appear. BUMN are increasingly focused, efficiency is increasingly encouraged, assets are increasingly optimised, and profitability is starting 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 to the greatest extent for the people’s prosperity. This is in line with President Prabowo’s speech 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 to the greatest extent for the people’s prosperity and must not be enjoyed only by a handful of people,” said Bambang again.