Economist values SOE transformation to strengthen contribution to the state

Executive Director of the Institute for Development of Economics and Finance (Indef), Esther Sri Astuti, has assessed that the transformation of state-owned enterprises (SOEs) through restructuring and streamlining will strengthen the performance of these state companies while increasing their contribution to the state. She stated that financial restructuring can help SOEs resolve debt issues and strengthen their balance sheets. “Healthy SOEs are able to provide more optimal dividends and support the funding of national strategic projects,” she said. Furthermore, merger steps and the formation of SOE holding companies can increase efficiency and competitiveness by reducing overlapping functions. With a leaner structure, SOEs are expected to be more adaptive and capable of competing in the global market. The transformation is also considered capable of strengthening corporate governance through increased transparency and the application of good corporate governance (GCG) principles to prevent corrupt practices. Previously, Commission XI of the Indonesian House of Representatives (DPR) assessed that the transformation of SOEs in the financial services sector, carried out by Danantara, has yielded positive results. The Chairperson of Commission XI, Mukhamad Misbakhun, stated that the positive performance of Himbara, Pegadaian, and PNM in the first quarter of 2026 indicates that the transformation is on the right track. He noted that the focus is not only on profit growth but also on strengthening efficiency, growth quality, and expanding economic benefits for the community. This is reflected in the profits of banks under the State Banks Association (Himbara), which were recorded at IDR 39.92 trillion in the first quarter of 2026. Bank Mandiri recorded a net profit of IDR 15.4 trillion with credit growth reaching 17.4 per cent year-on-year (yoy). BRI posted a net profit of IDR 15.5 trillion, growing 13.7 per cent yoy, supported by credit distribution of IDR 1,562 trillion and third-party funds of IDR 1,555 trillion. This performance continues BRI’s achievement throughout 2025, where it recorded a consolidated profit of IDR 57.13 trillion and distributed cash dividends of IDR 52.1 trillion. Meanwhile, BNI recorded a profit of IDR 5.66 trillion with credit growth of 20.1 per cent to IDR 919.3 trillion. As of the end of May 2026, BNI’s total assets reached IDR 1,365.36 trillion, with third-party funds of IDR 1,063.92 trillion and equity of IDR 160.99 trillion. Esther added that one issue needing attention is the large number of subsidiaries and sub-subsidiaries of SOEs that are not always related to the parent company’s core business.