Danantara Undertakes Major Restructuring of 1,074 State-Owned Enterprises

JAKARTA — Dony Oskaria, head of the State-Owned Enterprises Agency and chief operating officer of Danantara Indonesia, said the organisation is undertaking a major restructuring of the 1,074 state-owned companies under its management. The restructuring aims to address layered corporate structures, cut costs and improve the quality and performance of state-owned enterprises (SOEs).

“Can you imagine that we have 1,074 companies? This is the reality. We have 1,074 companies. Many of these companies operate in the same businesses,” Dony said at the Danantara Technology Innovation Investment Forum (DTIIF) 2026 at the Fairmont Hotel in Jakarta on Monday (26 October 2026).

Dony said many SOEs currently conduct the same businesses and operate within layered structures, resulting in higher costs. He said these layers enable some companies to profit from others within the same business chain, making costs higher than those of competitors.

“Each company takes a profit from another. So, compared with our competitors, our costs are 150 per cent higher. That is the reality,” he said.

Dony said a similar problem exists in Pertamina’s business chain. Under the structure, the downstream company owns the goods and products, while a shipping company transports them and then uses private-sector services. He said this arrangement creates inefficient layers of profit within the group.

“Ninety-seven per cent of dividends come from just eight companies. So, in my view, it would be better to reduce the number to just eight companies; I am now reducing it by 174 companies,” Dony added.

Dony stressed that Danantara Indonesia can survive only if it improves the management of SOEs. As a sovereign wealth fund built around the management of state-owned companies, the quality of their management is fundamental to Danantara’s continued existence.

“Danantara Indonesia is essentially highly dependent on how well we manage state-owned companies. If we fail to manage them, then we no longer need Danantara Indonesia. The key is how we can improve the quality of state-owned companies,” he said.

Dony said Danantara had drawn up a five-year roadmap to deliver the transformation. The first year will focus on consolidation and corporate restructuring.

He said Danantara uses global benchmarks in each industry to compare SOEs’ business models, revenue sources and composition, cost structures and EBITDA margins with international best practice. Dony cited the transformation of the airport business as an example.