Danantara's Success Lies in SOE Restructuring, Not Short-Term Dividends, Says Economist
The success of the Danantara Indonesia Investment Management Agency (BPI) cannot be measured by the size of its investment returns or dividends in the short term. The institution’s primary focus lies in its success in transforming and restructuring state-owned enterprises (SOEs).
Senior economist at Paramadina University, Wijayanto Samirin, stated that Danantara’s current investment priorities should be directed towards supporting the SOE restructuring agenda through investments that are commercially viable and within the institution’s capacity. “Danantara’s priority is to restructure SOEs. The investments made must be feasible and match its capacity,” Wijayanto told Bisnis on Saturday.
According to him, Danantara’s success indicators cannot be assessed solely based on financial ratios such as return on assets (ROA) or the amount of dividends generated in a short period. Instead, the primary measure of the institution’s success is the extent to which Danantara is able to transform SOEs, from overhauling business models and strengthening good corporate governance (GCG) to enhancing the professionalism of state-owned company management.
“Danantara’s success cannot be measured in the short term by ROA or dividend value. The most important performance indicator is Danantara’s success in transforming and restructuring SOEs, including business models, GCG, and professionalism. Returns and economic impact can only be measured in the years to come,” he said.
On another note, Wijayanto assessed that Danantara’s strategy for attracting global investors should emulate the approach of Malaysia’s sovereign wealth fund, Khazanah Nasional, which acts as an investment partner for foreign investors to encourage quality investment inflows into the country. He believes the target previously conveyed by the Minister of Investment and Downstreaming/Head of BPI Danantara, Rosan Roeslani, for around 80% of investments to be placed domestically is the right step.
“Danantara’s mission should ideally be similar to Khazanah’s, acting as a trigger for quality foreign investment into Indonesia by positioning itself as a counterpart to foreign investors. The target of around 80% domestic investment is appropriate,” he said.
However, Wijayanto cautioned that there are several challenges that could potentially hinder Danantara’s performance. The biggest challenge, according to him, stems from political intervention and assignments deemed commercially unfeasible or beyond the institution’s capacity. He noted that Danantara has recently been frequently asked to take over troubled companies and handle various projects that may not have economic viability.
“Danantara is being treated like a rubbish bin. If a company is about to go bankrupt, Danantara is asked to take it over. Danantara is also handling unfeasible programmes such as waste-to-energy, pilgrim accommodation in Mecca, chicken farming, textile sector investments, and others,” he said.
Furthermore, he assessed that Danantara’s authority in determining the boards of commissioners and directors of SOEs remains limited. This condition is seen as an obstacle to effectively carrying out the function of transforming state enterprises. “Danantara also appears not to have the authority to determine the BoC and BoD of SOEs. This is a major constraint for the organisation,” Wijayanto stated.
In a previous written statement, Danantara claimed that the transformation being carried out by SOEs is beginning to show results. Several state-owned companies have recorded performance improvements through business restructuring, consolidation, and financial rehabilitation. Danantara stated that efficiency gains from this agenda could reach Rp50 trillion per year.
Minister of Investment and Downstreaming/Head of BKPM and Chief Executive Officer (CEO) of Danantara, Rosan Roeslani, said the SOE transformation is not solely aimed at increasing profits but also at expanding economic benefits for the public. “SOEs do not solely pursue profit; their presence must also be felt by the community, by the people, in the form of providing equal opportunities for all levels, from MSMEs to commercial and corporate entities,” Rosan said.
According to him, the transformation undertaken by each SOE has a different approach according to its respective business characteristics. Therefore, the performance now beginning to show is the result of a restructuring process that has been underway for several years.
One transformation was carried out by PT Pupuk Indonesia through changing the subsidy scheme from a cost-plus model to a mark-to-market model. This change provides room for the company to manage commodity price fluctuation risks while increasing profitability more adaptively.
In the energy sector, PT Pertamina (Persero) consolidated by integrating PT Pertamina Patra Niaga, PT Kilang Pertamina Internasional (KPI), and PT Pertamina International Shipping (PIS) into the Subholding Downstream. This move was aimed at reducing operational overlaps, accelerating decision-making, and strengthening the integration of the downstream business chain.
Meanwhile, PT Krakatau Steel showed restructuring results through improved financial conditions. The company posted a profit of Rp635 billion up to April 2026, after recording a loss of Rp981 billion in the same period the previous year. This improvement occurred alongside a reduction in debt from US$1.7 billion to US$1.1 billion.
Performance improvements were also claimed in the industrial estate sector. Throughout 2025, the provision of industrial land increased by 142 hectares. Revenue rose from Rp3.09 trillion in 2024 to Rp3.81 trillion in 2025, while profit increased from Rp830 billion to Rp1.3 trillion.
On the other hand, PT Pelabuhan Indonesia (Pelindo) posted a profit of Rp1.48 trillion up to April 2026, a 169% surge compared to Rp550 billion in the same period.