Danantara Targets Completion of SOE Mergers by 2026

Danantara targets the completion of mergers of state-owned enterprises (SOEs) across all sectors by 2026. Managing Director of Finance at Danantara Asset Management, Sahala Situmorang, stated that all sectors are priorities in this merger initiative.

Last year, Sahala said, Danantara prioritised SOE mergers for several sectors. The merger process is planned to be executed within three to five years. “Our mandate now is to carry out the mergers this year. So we must complete them this year,” he said at the Fitch on Indonesia 2026 event in Jakarta on Thursday, 23 April 2026.

Sahala explained that, based on the analysis conducted by Danantara, consolidation is the primary solution to the problems faced by SOEs. This strategy, he said, will direct SOEs to focus on their core businesses.

The former Executive Director of Deloitte Consulting Southeast Asia claimed that consolidation efforts are beginning to bear fruit, one example being in the energy sector. Sahala mentioned that the merger of businesses in the upstream or upstream subholding has impacted cost efficiency by around US$400 million per year.

The merger strategy is also expected to significantly increase SOE synergies. “At least in terms of size, just in terms of size, procurement will be greatly affected,” Sahala stated.