Danantara to Streamline SOEs, Lawmaker Says It's for Structuring and Asset Management Effectiveness

A member of House Commission VI, Firnando Hadityo Ganinduto, has expressed support for the streamlining of state-owned enterprises (SOEs) being carried out by Danantara, describing it as part of a major transformation of state companies. Firnando believes the policy fulfils a mandate set out since Danantara’s inception: to tidy up the SOE structure, which currently consists of more than a thousand corporate entities including subsidiaries and sub-subsidiaries, so that it becomes more focused, efficient, and has a clear business direction. “This transformation process must not be interpreted as a reduction in the workforce, but rather as corporate structuring to improve the effectiveness of state asset management,” Firnando said in a statement on Sunday (14/6/2026).

Firnando explained that, based on a presentation received by House Commission VI, the number of SOE entities exceeding 1,000 companies is considered to cause various operational inefficiencies. Danantara is therefore targeting a simplification of the corporate structure to around 200 more integrated companies with clear functions. The move is also based on findings of potential inefficiencies estimated at around Rp50 trillion annually due to overly layered corporate structures that do not all add value to corporate performance. “From the outset we have supported Danantara’s move because its objective is very clear: to make SOEs more effective and efficient. Out of more than a thousand existing companies, there are a number of subsidiaries and sub-subsidiaries deemed no longer relevant or not optimally contributing to the parent company’s core business. Therefore, this streamlining is a good step to strengthen governance, increase business focus, and reduce potential inefficiencies that have been burdening state companies,” said the Golkar Party legislator.

Firnando supports Danantara’s commitment to ensuring that streamlining is not carried out through layoffs. According to him, this has been one of the House’s main concerns since the beginning of discussions on the SOE transformation programme. Danantara’s management has conveyed to House Commission VI that consolidation is being carried out through simplification of corporate structures and strengthening of business synergies, not by sacrificing the workforce. “In this way, efficiency can be achieved without reducing protection for workers who have been an important part of the SOE ecosystem,” Firnando stated.

Firnando considers the streamlining to be a long-term strategic step to create SOEs that are healthier, more professional, and capable of competing at the global level. In addition to simplifying the corporate structure, this policy will group companies based on appropriate sectors and functions so that there is no overlap of business activities between entities. “This is not a job that can be completed in a short time, but I see that the strategy being implemented by Danantara is on the right track. The ultimate goal is to deliver SOEs that are more focused, more productive, and have strong competitiveness so they can provide greater benefits for the national economy and the wider community,” said Firnando.