Danantara to Reassess State-Owned Enterprises' Assets

The Badan Pengelola Investasi Daya Anagata Nusantara (Danantara) has begun a review, or audit, of the condition of state-owned enterprises (BUMN) owned by the state. The move is part of an effort to strengthen governance and the financial foundations of Danantara’s entire portfolio. Managing Director of Stakeholder Management at Danantara Indonesia, Rohan Hafas, said the evaluation is part of a broader consolidation of management after the agency received a mandate to manage state assets. “As the new management and holder of the mandate to manage state assets, Danantara Indonesia is obliged to conduct a comprehensive review of asset quality, accounting policies, and governance discipline across the portfolio. This governance reset is a move to strengthen the foundations so that the balance sheet reflects the actual, prudent, and credible condition,” Hafas said on Thursday, 5 March. The review is being conducted through the operational entity Danantara Asset Management. The evaluation covers several important aspects, including accounting policies, asset quality and recording, and strengthening governance systems and risk management across the companies. The move is considered important to ensure the management of state-owned enterprises is more transparent and aligned with sound business practices. In addition, the evaluation is expected to strengthen the financial foundations of BUMN amid demands for efficiency and improved performance. Hafas says strengthening management discipline can open space for increased productivity of state-owned enterprises. With a stronger financial foundation, BUMN are expected to improve operating margins while contributing a more tangible economic effect for the country. “Healthy growth must be based on productivity and operational performance, so its contribution to state revenues is truly measurable and sustainable,” he added. He also stressed that the future success of state-owned companies will not be measured solely by the size of numbers in financial reports. The performance considered important is the ability to generate healthy profits, strong cash flow, and sustainable dividends for the state. The reform of BUMN governance will be undertaken gradually to avoid disrupting operational stability and the continuity of businesses within its portfolio.