DPR Assesses Danantara Restructuring Could Strengthen SOE Performance

The move by the Daya Anagata Nusantara Investment Management Agency (BPI Danantara) to restructure state-owned enterprises (SOEs) by slashing the number of entities from more than 1,000 to around 200-300 companies has garnered support from various quarters. The policy is considered capable of reducing business overlap while refocusing SOEs on strategic sectors. This support emerged during a Round Table Discussion (RTD) held by the Nagara Institute and Akbar Faizal Uncensored (AFU) titled “Hundreds of SOEs Forced to Close, the Last Bet to Save State Business Units”. The forum brought together members of the House of Representatives (DPR), academics, and economic observers to discuss the direction of state company restructuring. Nagara Institute Executive Director Akbar Faizal stated that all input from the forum would be compiled into recommendations to be submitted to President Prabowo Subianto. He emphasised that discussions regarding the future of SOEs must be built through constructive, data-based criticism. “We will compile a book with critical notes to then submit to the President,” he said. Member of Commission VI of the Indonesian House of Representatives, Gde Sumarjaya Linggih, assessed that the establishment of SOEs must fundamentally have strategic objectives and be oriented towards national development interests. Therefore, the government needs to evaluate entities running businesses that the private sector is already capable of handling. According to the politician familiarly known as Demer, at the beginning of their formation, SOEs were present to answer the country’s needs, ranging from safeguarding strategic sectors and carrying out government assignments to driving development in underdeveloped regions. He stated that this framework should once again become the reference in structuring future SOEs. He noted that over time, many state companies have developed various business lines no longer directly related to their core business. This condition has led to the emergence of various derivative entities that potentially reduce the company’s focus on its primary mandate. Demer also viewed that financial consolidation through Danantara could accelerate the handling of companies experiencing performance issues. With more integrated asset management, the government is considered to have greater room to improve entities requiring support or to seize new investment opportunities.