Danantara Records 167 SOEs Have Been Liquidated

Asset management will be united, then hotels and others have been united, and posts and logistics will be united.

Jakarta (ANTARA) - Danantara’s Operational Director Dony Oskaria noted that as of 28 April, 167 state-owned enterprises (SOEs) have been liquidated over the past year, as part of the optimisation of SOEs to create more effective and efficient businesses.

“Total liquidated so far up to today is around 167 companies,” Dony said when met on the sidelines of the Jakarta Globe Insight event held in Jakarta on Tuesday.

He emphasised the government’s commitment to a comprehensive transformation and restructuring by cutting 1,077 companies to around 200-300 companies.

Dony, who is also the Head of the SOE Monitoring Agency, stated that the streamlining process for SOEs will be fully executed by 2026, as instructed by President Prabowo Subianto.

Liquidation is carried out for companies whose debt burden far exceeds their assets and which lack market competitiveness.

Then, divestment is conducted for small-scale companies outside the core business, for example, travel agencies owned by energy SOEs.

Another crucial step is the merger or consolidation of companies based on industrial sectors, such as logistics, hospitals, and hospitality, to achieve large economies of scale.

Danantara is also targeting the consolidation of SOEs in the securities and insurance sectors. These steps are the government’s efforts to achieve efficiency in SOEs.

In addition to streamlining, Dony also emphasised a fundamental paradigm shift in interactions between SOEs. The term “SOE Synergy” is now firmly replaced with obligation.

This step is taken along with the establishment of the Danantara Sovereign Wealth Fund, which will consolidate state assets to make them more directed and globally competitive.