Danantara Sells More Than 100 Non-Core SOEs to Private Sector

Danantara Indonesia has sold more than 100 non-core state-owned enterprises (SOEs) to the private sector.

Danantara Indonesia Chief Operating Officer Dony Oskaria said the divestments were made because private-sector companies were considered better equipped to manage those businesses.

“As part of the SOE transformation, we have sold more than 100 non-core SOEs to the private sector, as private companies may be better at managing them than SOEs,” he said at the Two Years of the Prabowo-Gibran Administration event at the Hotel Indonesia Kempinski in Jakarta on Thursday (8 October).

Dony stressed that Danantara did not want to take over the private sector’s share of business. Instead, it was reducing the number of SOEs to create more room for collaboration with private companies.

He cited the hotel business as an example. Dony said President Prabowo Subianto had instructed SOEs to leave the sector, which the government did not need to enter.

“The President’s instruction was that, if necessary, all the hotels should be sold. Why should the government be in the hotel business? There are plenty of private companies,” Dony said.

He said Danantara would continue to work with and invest in private companies, including by placing liquidity with them.

According to Dony, Danantara’s efforts to partner with the private sector reflect the fact that most of its management team have previously worked in private industry.

Danantara is consolidating a portfolio of 49 SOE-owned hotels under a single holding company within the PT Hotel Indonesia Natour (HIN) group.

Danantara Indonesia Chief Executive Officer Rosan Roeslani said the consolidation of the state-owned hotel assets was part of a comprehensive restructuring roadmap covering thousands of SOE entities, aimed at improving operational efficiency and optimising state assets.

“We are continuing to combine entities, including hospitals. We have 137 hotels, which we are also consolidating. This is one of the programmes we are carrying out, with the aim of reaching approximately 300 SOEs by the end of this year,” Rosan said at a press conference on the 2027 Draft State Budget and Financial Note at the Ministry of Finance’s Directorate General of Budget headquarters on Friday (14 August).