Danantara to tidy up state-owned enterprise governance — these are the areas to be evaluated

Jakarta, CNBC Indonesia – The Badan Pengelola Investasi Daya Anagata Nusantara (Danantara) is taking steps to strengthen governance and undertakings the comprehensive reorganisation of the fundamental make-up of its companies. As part of a transition and management consolidation process, Danantara, through its Operational Holding entity, Danantara Asset Management, is carrying out a comprehensive and structured review of the state-owned enterprises (BUMN).

The process includes evaluating accounting policies, asset quality and recording, strengthening governance systems and integrating risk management to ensure governance standards that are increasingly solid and aligned with best practice.

This strengthening step had previously begun with the Karya Group of Companies and is now gradually expanding to other sectors within the BUMN portfolio. The main focus of the initiative is asset normalisation and quality improvement, aligning recording so that financial statements are more accurate, fair and up-to-date in accordance with the applicable accounting standards and broadly recognised financial reporting practices, and ensuring transparent and prudent management practices.

Danantara also emphasises strengthening the financial fundamentals based on earnings quality and operating cash flow, sustained EBITDA growth, discipline in capital expenditure, and a healthy and well-managed capital structure. Attention is directed at optimising return on assets (ROA), improving operating margins, strengthening the capacity to meet financial obligations, and conservative and measured liquidity management.

This approach ensures that company performance is not only reflected in nominal growth but in the ability to generate consistent cash flows, maintain solvency, improve return on equity (ROE), and strengthen the capacity to pay dividends sustainably for the state as shareholder.

Managing Director Stakeholder Management Danantara Indonesia, Rohan Hafas, said that this governance reset is part of the new management’s commitment to ensure that BUMN management is oriented towards real economic value and long-term sustainability.

“As the new management and mandate-holders for 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 step to strengthen the foundation so that the company’s balance sheet reflects current, prudent and credible conditions,” he said, in a written statement to CNBC Indonesia, Friday (6 March 2026).

Rohan also stressed that future success will not be measured merely by the size of balance sheet figures but by the quality of actual performance.

“In the future, success will not be determined solely by large balance sheet figures but by the quality of earnings, the strength of cash flows, and the company’s ability to create real economic value. Our focus is to build a foundation that generates real money and sustainable dividends for the state. Healthy growth should be grounded in productivity and operational performance, so its contribution to state revenue is truly measurable and sustainable,” he asserted.

According to Rohan, with a stronger financial foundation and disciplined management, the company will place greater emphasis on efficiency, higher operating margins, and the creation of real value for shareholders, namely the state.

Danantara emphasises that the process is being conducted systematically and gradually, while maintaining operational stability and business continuity across the portfolio, as part of a long-term institutional transformation to strengthen the national economic foundation.